Bitcoin (BTC) has been sending mixed signals recently, with institutional sell-offs counterbalanced by increasing whale accumulation. The cryptocurrency has dropped by 12.42% over the past month, and despite recent bullish moments, it’s struggling to maintain upward momentum. At the time of writing, Bitcoin showed only a slight uptick of 0.26% over the last 24 hours. However, amidst this uncertainty, the asset still has potential for a major rally, driven by both retail investors and whales.
U.S. Retail Investors and Institutions Sell Off Bitcoin
The past 24 hours have seen a significant drop in Bitcoin buying activity, particularly among U.S. retail and institutional investors. According to the Coinbase Premium Index (CPI), which tracks U.S. retail investor activity on Coinbase relative to other exchanges, there has been a noticeable increase in selling pressure. As the CPI dropped below zero, it indicated that U.S. retail investors are opting to sell off their holdings, echoing the actions of institutional investors who have recently been liquidating their Bitcoin positions.
This decline in investor sentiment follows a brief period of bullishness in mid-February when Bitcoin experienced a notable price surge. However, Bitcoin exchange-traded funds (ETFs) provide a more bearish outlook. February saw a $70.6 million inflow into spot BTC ETFs, but on February 18, a significant outflow of $129.1 million occurred, indicating that more Bitcoin was withdrawn than purchased, continuing the trend of institutional sell-offs observed between February 10th and 13th.
Whale Accumulation and Bullish Sentiment
Despite the institutional selling pressure, some positive signals remain. Long-term investors, especially those linked to over-the-counter (OTC) trades, have been accumulating Bitcoin in large quantities. According to recent data, one address has purchased over 28,000 BTC, valued at more than $2.6 billion. This accumulation could create a supply squeeze, reducing the amount of circulating Bitcoin and potentially leading to a price increase in the future.
In addition, the spot market has also seen bullish behavior, with $314.7 million more BTC bought than sold in just the past week. Netflow data indicates continued accumulation of Bitcoin since January 2025, suggesting that demand remains strong even as some institutional investors scale back their holdings. This consistent buying activity, especially from large players, could be setting the stage for a significant upward move in the near future.
Liquidity Concerns and Price Action
While the bullish sentiment remains intact, low liquidity levels are one of the primary threats to Bitcoin’s upward movement. According to Binance’s liquidation heatmap, a critical liquidity level is located at $92,930.28, where $136.1 million worth of BTC buy orders have been placed. Liquidation levels typically act as price magnets, pulling the price toward them, which suggests Bitcoin might drop to this level before seeing a rebound.
In the midst of these mixed signals, the market’s next move will depend on how these competing forces play out. If the whale accumulation trend continues and the institutional sell-offs subside, Bitcoin could see a swift recovery. However, the ongoing concerns about liquidity may lead to short-term dips. Bitcoin’s price action remains uncertain, and the market will be closely monitoring any further developments in investor sentiment and on-chain data to determine its next significant move.
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