Bitcoin: Whales accumulate 22K BTC off the dip – More rally likely? 

• BTC whales scooped 22K BTC during the recent dip. 
• Most whales have trimmed positions since last December. 

Bitcoin [BTC] whale wallets saw a spike in accumulation inflow of over 22K BTC during the dip on the 28th of January.

The king coin dropped to a low of $97.7K during the day’s trading session, offering a slight discount that was met with massive whale demand. 

For context, such spikes in whale accumulation coincided with local bottoms. 

Does that mean BTC marked $97K as the local bottom for a likely springboard for a higher move?

Well, the FOMC forward guidance and key U.S. inflation data (scheduled for Friday) could determine the asset’s next direction into February. 

Bitcoin whales decline

That said, many whales with over 1K BTC have been cashing out since mid-December.

Glassnode data revealed these whale entities had dropped 4% from 1,724 to 1,655, underscoring increased sell-offs in the past week. 

A continued drop in the metric could be a warning sign for a potential local or cycle top, as seen in the 2020-2021 cycle. 

AMBCrypto also checked the network growth for more insights. Since December, the average active addresses have dropped from nearly 1.1 million to 957K. 

However, the metric appeared to have bottomed out at the 950K. A renewed surge could signal increased market interest for BTC, which could drive the king coin price to new highs. 

However, demand was nearly flat as of this writing. According to the Coinbase Premium Index (CPI), an indicator that tracks U.S. investors’ appetite for the world’s largest cryptocurrency, remained muted in January. 

Historically, BTC has fronted a sustainable uptrend whenever the CPI was positive (green) for an extended period. 

At press time, the largest digital asset was stuck between $100K and $105K, ahead of key U.S. inflation data.