According to Cointelegraph, Bitcoin (BTC) is showing signs of a potential continuation of its bull run as whale inflows to exchanges have plateaued this month. Data from the on-chain analytics platform CryptoQuant indicates that large inbound transactions to exchanges are forming a potential lower high in February.
Bitcoin's price cycle typically peaks when whale exchange movements decrease from their local highs, as observed by CryptoQuant. In a recent blog post, contributor Grizzly highlighted the 30-day simple moving average of the Whale Exchange Ratio, which measures the size of the top ten inflows to exchanges relative to all inflows. This ratio reached 0.46 on February 12, nearing multi-year highs and rising from 0.36 in mid-December when BTC/USD was trading near its all-time highs. Although price action has since declined, whale activity has increased, but the trend is showing signs of slowing down. Grizzly notes that since late 2024, the metric has surged significantly, though its momentum has slightly moderated over the past two weeks without a definitive reversal. Historical trends suggest that a decrease in whale deposits on spot exchanges often precedes a bullish Bitcoin rally.
Cointelegraph also reported on the high whale inflows earlier this week, while newer whales are being monitored as potential support for BTC prices. The aggregate cost basis for large-volume investors holding for up to six months is just under $90,000, making this level crucial for traders as it has held for over three months.
In addition to whale activity, Bitcoin miners have returned to accumulation this month, marking a significant shift after six months of nearly uninterrupted outflows from miner wallets. This coincides with a fresh "capitulation" phase, which often signals local market bottoms. Last July, just before miner outflows increased, Cointelegraph noted research suggesting that the overall market impact was already significantly lower than institutional flows, particularly those from U.S. spot Bitcoin exchange-traded funds (ETFs).
This article does not provide investment advice or recommendations. Every investment and trading decision involves risk, and readers should conduct their own research before making any decisions.
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