Dacity Coin
Zcash
Sui
Injective
Quantus
Pearl
NEAR Protocol
- Bitcoin sees massive whale accumulation with $1.6B leaving exchanges.
- BTC price holds above $98K, with technicals hinting at a breakout.
- On-chain data signals a supply crunch as exchange reserves hit a six-year low.
Whales Withdraw $1.6B in BTC—A Bullish Supply Shock?
One of the biggest catalysts fueling Bitcoin price surge is the sharp decline in exchange balances. Data from Glassnode shows that over 17,000 BTC left centralized exchanges on February 5th, marking the largest single-day outflow since April 2024.
Coinbase processed the bulk of these withdrawals, handling 15,000 BTC in net outflows that day. Additional analysis from Timechainindex.com reveals Coinbase split four addresses holding over 20,000 BTC into 60 smaller wallets—a pattern linked to institutional accumulation.
“Whales are buying this dip,” said André Dragosch, European head of research at Bitwise.
CryptoQuant data confirmed a 47,000 BTC net outflow across exchanges on Feb. 5, with 15,800 BTC pulled from Coinbase alone. A shrinking exchange balance often signals reduced selling pressure, which can push prices higher.
Bitcoin briefly dipped below $96,800 late Wednesday before rebounding today. The bounce followed comments from Eric Trump, son of former President Donald Trump, urging World Liberty Financial, a family-linked crypto platform, to make its first Bitcoin investment.
Bitcoin’s exchange supply has dropped 13% in six months, hitting 2.67 million BTC, its lowest in six years. The ongoing decline aligns with Bitcoin’s 62% price rise since Aug. 2024, reinforcing the case for a supply squeeze.
Bitcoin Price Eyes $102K—Will Bulls Take Control?
Bitcoin price is consolidating below $102,000, a key resistance level identified by analysts like Hardy. He suggests a breakout above $102,000 and $104,000 could trigger a fresh wave of buying.
The weekly chart shows a bull flag, a pattern signaling a possible continuation of the uptrend. A move past $101,800 could confirm this setup, with analysts predicting a rally toward $167,000, a 70% gain from current levels.
The Relative Strength Index (RSI) at 63 shows BTC isn’t overbought, leaving room for more upside. The 50-day EMA at $98,686 has acted as support, keeping Bitcoin in a bullish structure. Meanwhile, the 200-day EMA at $83,511 reinforces the long-term uptrend.
Fibonacci retracement levels highlight $102,235 as a key barrier, aligning with Hardy’s resistance call. A break above this could push BTC toward $119,132, with the 2.618 extension targeting $136,029.
Bitcoin dominance remains strong, keeping altcoins from their usual explosive rallies. Crypto trader Dami-Defi sees Bitcoin in a pre-parabolic phase, meaning the market hasn’t entered full bull mode yet.
“That 2-5x bull run in two days is still down the road. The good news is Bitcoin accumulation is rising,” he said.
With whales accumulating, ETFs drawing institutional interest, and macro conditions turning favorable, Bitcoin appears poised for a breakout.
If BTC clears $102,000, it could mark the beginning of a much larger rally, potentially targeting $167,000 in the coming months.
BTC Price Surges as Weakening U.S. Dollar and ETF Inflows Drive Demand
Bitcoin price is gaining momentum as macroeconomic conditions turn favorable. The U.S. Dollar Index (DXY) has dropped 1.7% since February 3rd, following President Donald Trump’s threats to impose tariffs on Canada and Mexico.
Meanwhile, U.S. spot Bitcoin exchange-traded funds (ETFs) continue to attract institutional capital. Over the past two weeks, these funds have recorded $2.5 Billion in inflows, pushing the total investment to $40 Billion since their launch on Jan. 11.
CoinShares data shows Bitcoin-focused investment products registered $486 Million in net inflows for the week ending January 31, reflecting growing confidence in Bitcoin price’s long-term potential.
Bitcoin price action suggests that a major breakout could be around the corner. Whales are accumulating aggressively, exchange reserves are dwindling, and institutional interest remains high.
If BTC flips $101,800 into support, analysts predict a rally to $167,000 in the coming months. With multiple bullish catalysts aligning, Bitcoin’s parabolic phase may be closer than expected.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
