Bitcoin (BTC) Price Recovers to $94,000 as Whales Buy the Dip

The price of bitcoin (BTC) price has recovered to $94,000 since hitting lows under $75,000 early this month.

Bitcoin (BTC) price has recovered to $94,000 since hitting lows under $75,000 earlier this month. The surge is being characterized by crypto whales, large investors with substantial capital, snapping up coins from the market, in activity seen as confirming the rally.

Data from on-chain analytics firm Glassnode showed that Standard Deviation (SD) Trend F7D for BTC had dropped to 0.7 on Thursday.

The indicator compares the seven-day rolling average of the price to the 21-day moving average. A reading above zero suggests that the price is likely to continue trending higher, while a reading below zero suggests that the price is likely to continue trending lower.

An SD Trend F7D value close to one suggests that the price is trading in a quiet period, while a value close to zero suggests that the price is moving quickly in one direction or the other.

A high level of volatility, such as that seen earlier this month, was characterized by an SD Trend F7D value of 0.

The lack of volatility in the current market was seen in the indicator dropping to 0.7, a period which coincided with BTC price bouncing back from lows of $76,000 to highs above $94,000 this week.

Activity in the BTC market was also seen in on-chain data from Glassnode which showed that there was a lack of new coins entering circulation.

The Accumulation Trend Score, which is a proprietary indicator used by Glassnode to assess the relative size of entities actively soaking up new coins on-chain, showed that on Thursday, wallets holding over 10,000 BTC had an accumulation trend score of 0.9.

A score of 1 indicates that, on aggregate, the entities are accumulating, while a value close to zero suggests otherwise.

Those with 1,000 BTC to 10,000 BTC scored 0.7, while smaller wallets were pivoting to accumulation with a trend score 0.5.

"So far, large players have been buying into this rally," Glassnode noted on X.

Meanwhile, data from CryptoQuant revealed the highest BTC outflow from centralized exchanges in two years when analyzed using the 100-day moving average.

"A review of historical patterns suggests that this could imply re-accumulation of assets by investors," commentators at CryptoQuant said.

Outflows from centralized exchanges are taken to represent investor preference for direct custody of their coins, a sign of long-term holding strategy.