Investors in Bitcoin gather as price plummets experiencing highest inflow on record

Following the recent decline in prices, Bitcoin (
BTC
) long-term investors have been actively accumulating the cryptocurrency, with a significant increase in inflow to “Accumulation Addresses.” According to reports, these addresses have received a total of over 12,700 BTC and 20,000 BTC.

Ali Martinez first reported that the labeled “accumulation addresses” received 12,700 BTC in the past 24 hours, valued at $840 million. Meanwhile, long-position traders have suffered losses of nearly $400 million as over $136 billion exited the cryptocurrency market.

Later, Luke Mikic shared similar data, showing an all-time high of 20,000 BTC inflow to these “accumulation addresses.” Historical data from 2014 also indicates a record inflow to long-term holders.

Despite the positive accumulation trend, Bitcoin has recently displayed bearish signals. Bitcoin miners have been selling at a faster pace in recent months, reaching levels seen in previous bear markets. These miners have been operating at a loss for years, mining Bitcoin below its average cost.

Sell-offs by early investors are indicative of profit-taking strategies, with retail investors being used for liquidity exits. Martinez also warned of a potential double-top pattern forming on Bitcoin’s monthly chart, along with a bearish sell signal from the “TD Sequential” technical indicator.

The conflicting data and indicators emphasize the challenges of accurately predicting Bitcoin’s price movements. Investors are advised to practice proper risk management and exercise caution when dealing with such a volatile asset that is easily influenced by whales.

Disclaimer: The information provided in this article should not be interpreted as investment advice. Investing in cryptocurrencies carries inherent risks, and capital is always at risk in the volatile market.