BTCC / BTCC Square / Bitcoin News /
Bitcoin’s Bullish Divergence Signals Strength Despite Whale Retreat

Bitcoin’s Bullish Divergence Signals Strength Despite Whale Retreat

Published:
2025-10-31 20:09:15
18
1
[TRADE_PLUGIN]BTCUSDT,BTCUSDT[/TRADE_PLUGIN]

As Bitcoin approaches the $115,000 threshold in early November 2025, the cryptocurrency market is witnessing a fascinating dichotomy between whale behavior and technical indicators. Large Bitcoin holders, commonly referred to as whales, have begun reducing their substantial positions, with entities holding 1,000 or more BTC declining to 1,350 this week - marking the lowest whale count since July. This profit-taking activity among major investors typically signals potential short-term price corrections, as historical patterns suggest such behavior often precedes market pullbacks. However, the Relative Strength Index (RSI) continues to show bullish divergence, indicating that underlying market strength remains robust despite the whale exodus. The situation is further complicated by a significant 51% drop in exchange outflows since mid-October, reflecting cooling institutional demand that had previously fueled Bitcoin's remarkable rally. This combination of factors creates a complex market landscape where technical strength conflicts with changing investor behavior. While the reduction in whale holdings and diminished exchange outflows might suggest caution, the persistent bullish RSI divergence offers hope for continued upward momentum. Market analysts are closely monitoring whether the technical strength can overcome the headwinds created by large-scale profit-taking and whether institutional interest will rekindle to support Bitcoin's push beyond the $115,000 resistance level. The current market dynamics present both opportunities and risks for investors navigating this crucial juncture in Bitcoin's price trajectory.

Bitcoin Whales Retreat as Price Nears $115K, Signaling Potential Correction

Bitcoin's rally to $114,900 faces headwinds as large holders pare positions. Whale entities holding 1,000+ BTC dropped to 1,350 this week - the lowest count since July. This profit-taking behavior historically precedes short-term pullbacks, though the RSI's bullish divergence suggests underlying strength remains.

Exchange outflows plummeted 51% since mid-October, indicating cooling institutional demand. The market now tests critical levels: $117,600 resistance overhead, with $108,900 acting as near-term support. Such volatility is characteristic of pre-halving price discovery phases.

Analyst Predicts Bitcoin Uptick as Fed Reserves Decline

Bank reserves held at the Federal Reserve have plummeted, triggering scrutiny from financial analysts. Bitcoin, trading at $115,272, is at the center of this shift, with experts viewing the reserve drop as a precursor to market volatility.

The decline stems from multiple factors, including the U.S. Treasury's aggressive bill sales to replenish cash balances and the Fed's quantitative tightening policy. Adam Livingston, a financial analyst, warns reserves are nearing a critical threshold: "The banking system is within five weeks of the danger zone." Such a scenario could tighten liquidity and roil funding markets.

Bitcoin's price action is now seen as a barometer for broader financial stress, with traders anticipating upward momentum if traditional liquidity conditions deteriorate further.

Strategy Expands Bitcoin Holdings with $43 Million Purchase

Strategy has acquired an additional 390 Bitcoin for $43 million, bolstering its total holdings to 640,808 BTC valued at $47.44 billion. The purchase was executed at an average price of $114,562 per coin, reflecting the firm's unwavering commitment to cryptocurrency accumulation despite market volatility.

Michael Saylor, Strategy's executive chairman, continues to champion Bitcoin as a cornerstone of corporate treasury strategy. The digital asset serves as a hedge against economic instability, with the company's Bitcoin yield surging 26% year-to-date. Bitcoin's price recently touched $116,000 as institutional demand grows.

IBM Unveils Digital Asset Haven to Bridge Traditional Finance and Cryptocurrency Markets

IBM has launched Digital Asset Haven, a new platform designed to integrate cryptocurrency services with traditional financial infrastructure. The SaaS-based solution will offer custodial services, stablecoin payments, and asset tokenization for institutional clients, with plans to go live for U.S. institutions by Q4 2024.

The platform will connect with over 40 DeFi protocols across multiple blockchain networks, streamlining compliance for complex token offerings. This move signals IBM's strategic push into institutional crypto adoption as demand for regulated digital asset solutions grows.

Bitcoin briefly dipped below $115,000 during U.S. market hours, underscoring the volatility that enterprise-grade solutions like IBM's aim to mitigate for corporate adopters.

Bitcoin Derivatives Market Sees $19 Billion Liquidation Amid Price Volatility

Bitcoin's derivatives market faced a brutal reckoning in October as $19 billion in positions were liquidated within days. The sell-off triggered a 17% price plunge, erasing early-month gains and sending shockwaves through crypto trading circles.

Market analysts point to excessive leverage and speculative trading as key catalysts for the cascade. Derivatives traders bore the brunt of the downturn, with forced liquidations exacerbating downward pressure on spot prices.

The episode underscores cryptocurrency markets' vulnerability to violent deleveraging events. While Bitcoin has weathered similar storms before, the scale of this derivatives wipeout highlights persistent risks in highly Leveraged crypto trading environments.

Trump-Linked American Bitcoin Expands Treasury with $163M BTC Purchase

American Bitcoin, the mining venture co-founded by Eric Trump and Donald Trump Jr., has aggressively expanded its bitcoin holdings. The firm acquired 1,414 BTC for $163 million, bringing its total treasury to 3,865 BTC worth approximately $445 million at current prices.

"One of the most crucial metrics for a Bitcoin accumulation platform is how much Bitcoin backs each share," said Eric Trump, the company's chief strategy officer. The MOVE underscores American Bitcoin's focus on increasing its Bitcoin-per-share ratio to enhance shareholder value.

The Nasdaq-listed company (ticker: ABTC) debuted in early September following a merger with Gryphon Digital Mining. Despite initial volatility, the public listing has strengthened investor confidence in its Bitcoin accumulation strategy.

|Square

Get the BTCC app to start your crypto journey

Get started today Scan to join our 100M+ users

All articles reposted on this platform are sourced from public networks and are intended solely for the purpose of disseminating industry information. They do not represent any official stance of BTCC. All intellectual property rights belong to their original authors. If you believe any content infringes upon your rights or is suspected of copyright violation, please contact us at [email protected]. We will address the matter promptly and in accordance with applicable laws.BTCC makes no explicit or implied warranties regarding the accuracy, timeliness, or completeness of the republished information and assumes no direct or indirect liability for any consequences arising from reliance on such content. All materials are provided for industry research reference only and shall not be construed as investment, legal, or business advice. BTCC bears no legal responsibility for any actions taken based on the content provided herein.