Bitcoin (BTC) prices continue to fluctuate, a familiar pattern is emerging: large investors, known as Bitcoin whales, are actively accumulating more coins, while smaller investors—often referred to as “weak hands”—are selling in panic. This shift in behavior is raising discussions about whether Bitcoin is nearing its market bottom.

Bitcoin Whales Step In as Smaller Investors Sell

Recent on-chain data from CryptoQuant suggests that Bitcoin whales are aggressively buying up Bitcoin while short-term holders (STHs) are selling off their positions. This pattern mirrors the early stages of previous bull cycles, such as the 2020 cycle, when Bitcoin experienced significant growth after large-scale accumulation from whales.

As smaller investors panic, Bitcoin whales have stepped in to absorb the sell-side liquidity. Their purchases are providing critical support to Bitcoin’s price, preventing a deeper market correction and potentially stabilizing the market at current levels.

The Risk of $407 Billion in Sell-Off Pressure

The sharp decline in Bitcoin’s price in recent weeks—hitting a low of $77k—has led to increased fear and uncertainty among investors. Despite the broader negative sentiment, Bitcoin’s ability to hold above the $80k mark is seen as a sign of underlying strength.

However, there’s an important risk factor: approximately $407 billion in potential sell-off pressure from short-term holders. These STHs, with positions older than 155 days, have been realizing losses as the price of Bitcoin drops. The average acquisition price for these holders is $95,138, significantly higher than the current market price of around $83k.

If these STHs decide to sell, the market could face a surge in sell pressure, which may push Bitcoin’s price lower. However, Bitcoin whales have thus far been able to absorb this pressure, and if they continue to do so, the $80k level could act as a strong market bottom.

Will Bitcoin Whales Confirm the $80k Bottom?

The behavior of Bitcoin whales—who have been accumulating steadily—raises an important question: will $80k be confirmed as the market bottom? The pattern of whale accumulation during periods of uncertainty has been seen before, notably during the 2020 bull run. Back then, Bitcoin whales played a crucial role in absorbing sell-side pressure as the market began to break above the $10k resistance level.

This time, Bitcoin whales are showing no signs of exiting the market. Instead, they are actively purchasing Bitcoin, which suggests that they may continue to absorb the selling pressure from smaller investors. If this trend holds, it could help establish $80k as a solid bottom and prevent Bitcoin from falling further.

Strong Demand and Declining Exchange Reserves

Another key factor supporting the notion of a potential bottom is the strong buy orders coming from the U.S. market. Bitcoin exchange reserves, on the other hand, continue to decline, indicating that fewer coins are being sold on exchanges. This suggests that demand remains strong, and there is less liquidity available to push prices lower.

With Bitcoin whales absorbing the majority of sell-side pressure and demand from buyers remaining robust, the chances of a collapse below the $77k–$80k range seem unlikely. Instead, Bitcoin may be in the early stages of forming a market bottom.

Conclusion

Bitcoin whales are currently playing a pivotal role in stabilizing the market by accumulating Bitcoin while smaller investors panic-sell. This pattern of whale accumulation—coupled with strong demand from U.S. buyers and declining exchange reserves—indicates that Bitcoin could be nearing a market bottom. If whales continue to absorb the sell-side pressure, Bitcoin may see a recovery in the coming weeks, confirming $80k as a key support level and setting the stage for a potential price rally.