Bitcoin Stabilizes Above $63,000 As Whales Pile Up, ETFs See Inflows

• Bitcoin price is consolidating between $62,000 and $64,700, indicating a period of indecision among traders.
• Arkham intelligence data reveals that latent wallets are starting to move, while Lookonchain data indicates a significant build-up by whales.
• US spot ETFs see $136.70M inflow on Tuesday.

Bitcoin (BTC) was trading slightly lower around $63,800 at the time of writing on Wednesday, consolidating at the key $62,000 and $64,700 levels for the sixth consecutive day. There are signs of indecision among traders as dormant wallets start to move, some whales piled in and the US Exchange Traded Fund (ETF) saw an outflow of more than $136 million on Tuesday.

Bitcoin dormant whales are active

Akham intelligence data shows that latent wallets are on the move. A 13-year-old whale wallet that has been inactive since mid-2011 transferred 20 BTC worth $1.27 million to the Bitstamp exchange on Tuesday, marking its first move since the coins were initially received. During the same period, another whale wallet holding $77 million BTC also moves 5 BTC to Kraken. This wallet still holds 1215 BTC worth $77 million and has been mining since 2009, a month after Bitcoin launched. This whale woke up about three weeks ago and moved 10 Bitcoin to Kraken in 3 separate transactions.

The third early Bitcoin whale, which mined Bitcoin around the same time, was active last week. After 15 years of dormancy, he woke up to move $16 million in BTC.

This movement of early inactive wallets could spark fear, uncertainty and doubt (FUD) among traders, as wallets generally move BTC to centralized exchanges that are likely to sell. Investors should be cautious about such activity.

Lookonchain data shows that two whales accumulated $219 million worth of BTC on Tuesday. The first whale amassed $154.43 million in BTC, while the second whale amassed 1,015 BTC worth $64.47 million. Whale rallies like these are generally considered a positive sign and show investors confidence in Bitcoin.

Moreover, institutional flows increased on Tuesday. According to Coinglass data, the US spot Bitcoin ETF saw an inflow of $136.70 million on Tuesday. This is a positive sign for Bitcoin, as such flows suggest that institutional investors are actively accumulating the cryptocurrency.

In addition, the total Bitcoin reserves held by the 11 US spot Bitcoin ETFs Asset Under Management (AUM) reached $51.04 billion, the highest level since July 30.

Bitcoin Spot ETF net flow chart

Bitcoin ETF AUM

The exchange flow value from Santiment also shows a positive sign for Bitcoin. This metric shows the net movement of Bitcoin in and out of exchange wallets. An increase in this value indicates more BTC has entered the exchanges than exited, suggesting selling pressure from investors. Conversely, a drop in value indicates that more BTC left the exchange than entered, indicating less selling pressure from investors.

As with Bitcoin, the value fell from 2,099 BTC on Monday to -7,510 BTC on Tuesday. This drop indicates growing investor confidence as holders remove BTC tokens from exchanges and store them in cold wallets.

Bitcoin exchange flow equilibrium diagram

Bitcoin bulls target $70,000 amid ongoing consolidation

Bitcoin price has been consolidating between the key levels of $62,000 and $64,700 for over six days, after rising 7.5% last week. As of Wednesday, it is trading slightly lower at $63,854 after retesting the upper consolidation level of $64,700.

If Bitcoin price breaks this consolidation range around $64,700, it could first rise to retest the daily resistance level at $65,379. A successful daily close above this level could extend the 7% rally to retest the July 29 high of $70,079.

The Relative Strength Index (RSI) on the daily chart is pointing down, trading at 62, reflecting the fading of bullish momentum. For Bitcoin to break above the consolidation zone, the RSI must rise and head towards its 70 level. However, traders should be cautious if it crosses the overbought 70 level.

BTC/USDT Daily Chart

However, if BTC breaks and closes below the consolidation area around $62,000, it could drop 7% to retest the September 17 low of $57,610.