Bitcoin Bottom Signal Emerges as Whales Buy and ETFs Pull In $526M

Bitcoin is showing early signs of a possible bottom, with large holders returning to accumulation and spot Bitcoin ETFs attracting $526.7 million on October 19. However, weak spot demand and Bitcoin’s struggle to hold above $81,500 raise doubts about a sustained recovery, with $79,500 emerging as the next key support level.

Bitcoin Whales Return to Accumulation

According to CryptoQuant verified author XWIN Finance, Bitcoin’s market is showing early signs of a possible bottom

On-chain data shows that large Bitcoin holders, with 1,000 to 10,000 BTC, have shifted from selling to buying. Their 60-day net accumulation moved from -62,600 BTC to +5,230 BTC, suggesting that major holders are beginning to build their positions again.

Meanwhile, Binance’s USDT reserves have increased from around $790 million to $1.76 billion, suggesting more funds could be available for buying. 

Bitcoin’s Spot Demand Remains Weak

Despite large holder accumulation, demand in the spot market remains weak. As, the Coinbase Premium Index is around -0.1416%, suggesting weaker buying pressure from U.S. investors. 

However, weekly exchange flows have also turned into a net inflow of 8,428 BTC, which may indicate that more Bitcoin is moving onto exchanges and could face selling pressure.

Meanwhile, the Short-Term Holder Spent Output Profit Ratio (STH-SOPR) is near 0.9982, showing that short-term holders are still selling at small losses on average.

XWIN Finance said the market may be moving from a phase of fewer sellers toward a possible bottom, but a lasting rally will need stronger spot demand.

Bitcoin ETFs Record $526.7M in Inflows, BlackRock Leads

While spot demand remains weak, institutional interest has shown signs of strength. U.S. spot Bitcoin ETFs recorded $526.7 million in net inflows on October 19, their largest daily total since September 22, when inflows reached $714.75 million.

BlackRock’s IBIT attracted $665.2 million, offsetting outflows of $83.6 million from Fidelity’s FBTC and $54.9 million from Grayscale’s GBTC.

The inflows are encouraging, especially after Bitcoin ETFs saw $409.2 million in outflows last week. However, one strong day does not confirm a lasting reversal.

Bitcoin Price Outlook

Looking at the 1 hour daily Bitcoin price chart, BTC has slipped below $81,500, leaving $79,500 as the next key support level. Repeated rejection near $83,500 has weakened the short-term price structure.

Buyers need to push Bitcoin back above $81,500 to improve the outlook. If the price remains below that level, a retest of $79,500 becomes more likely.

For now, whale accumulation and ETF inflows offer signs of support, but stronger spot demand will be needed to confirm a sustained recovery.