Analysts from CryptoQuant indicate that as large holders begin to increase their holdings again, Bitcoin may be approaching its bottom.
IBIT under BlackRock attracted $665.2 million in capital inflows, which offset the capital outflows from FBTC of Fidelity and GBTC of Grayscale.
In addition, if prices fail to rebound, Bitcoin faces resistance around $81,500, with the next key support level being around $79,500.
Bitcoin is showing early signs of potentially bottoming out, with large holders returning to increase their holdings. Spot Bitcoin ETF attracted $526.7 million in capital inflows on October 19th. However, weak spot demand and Bitcoin's difficulty in holding above $81,500 have raised doubts about the sustainability of a continued rebound, with $79,500 becoming the next key support level.
Bitcoin whales return to increasing their holdings
According to CryptoQuant, the authenticated author XWIN Finance, the Bitcoin market is showing early signs of potentially bottoming out.
On-chain data shows that large holders with 1,000 to 10,000 Bitcoin have shifted from selling to buying. Their net increase in holdings over 60 days has changed from -62,600 Bitcoins to +5,230 Bitcoins, indicating that major holders are beginning to rebuild their positions again.
Meanwhile, Binance's USDT reserve has increased from approximately $790 million to $1.76 billion, which means that there may be more funds available for purchasing.
Bitcoin spot demand remains weak.
Despite large holders increasing their holdings, the demand in the spot market remains weak. Coinbase Premium Index is around -0.1416%, indicating that American investors are not very active in buying.
However, the weekly capital flow in exchanges also turned into a net inflow of 8,428 Bitcoins, which may indicate that more Bitcoins are flowing into the exchanges and may face selling pressure.
Meanwhile, short-term holders have achieved a profit-to-loss ratio of ( STH-SOPR ) close to 0.9982, indicating that short-term holders are still selling on average at a small loss.
XWIN Finance indicates that the market may be moving from a phase with fewer sell orders to a phase where a bottom could be formed, but to achieve a sustained rebound, stronger spot demand is still needed.
Despite still weak spot demand, there are signs of increasing interest from institutions. The US spot Bitcoin ETF recorded a net inflow of $526.7 million on October 19, the largest single-day inflow since September 22, with the inflow reaching $714.75 million on that day.
The IBIT of BlackRock attracted $665.2 million, offsetting the outflow of $83.6 million from FBTC of Fidelity, as well as the outflow of $54.9 million from GBTC of Grayscale.
These inflow data are encouraging, especially after Bitcoin ETF experienced a capital outflow of $409.2 million last week. However, a strong single-day performance does not confirm that the trend has truly reversed.
Bitcoin Price Outlook
Looking at the Bitcoin price chart over the past hour, BTC has fallen below $81,500, with $79,500 becoming the next key support level. Repeated setbacks around $83,500 have weakened the short-term price structure.
Buyers need to push Bitcoin back above $81,500 to improve the outlook. If prices continue to remain below that level, the likelihood of a retest of $79,500 will be greater.
Currently, whale purchases and the inflow of funds from ETF provide signs of support, but to confirm a sustained recovery, stronger spot demand is still needed.
