Bitcoin’s price has tumbled to a low of around $103,700 over the past couple of hours.

At the time of this writing, BTC has pulled back to around $104,100, bringing the total liquidations across the derivatives market to around $844 million, according to Coinglass.

Over the past one hour alone, the liquidated BTC positions surpassed $226 million, where a whopping $220 million of that were longs.

This comes as broader stock markets also chart notable declines. The S&P 500, Nasdaq, and the Small Cap 2000 are all down by more than 1%, while the DJI is down by 0.6%, at the time of this writing.

The drop comes amid escalating tensions between the US and China. Donald Trump said that China has “violated” the agreement, ending his post on Truth Social in a way that promises retaliation. It appears that the markets are bracing for it.

Meanwhile, China responded, urging the US to “immediately correct its erroneous actions, cease discriminatory restrictions against China and jointly uphold the consensus reached at the high-level talks in Geneva.”

With Bitcoin trading below $106,000, some participants are opting to cash out partial holdings, looking to lock in profits amid the crypto asset’s impressive price performance in the past month or so.

While this raises concerns of early signs of a trend reversal, new data revealed the sustainability of the rally.

NRPL Signals Continued Optimism

According to CryptoQuant’s latest analysis, the Net Realized Profit/Loss (NRPL) metric shows that while BTC investors are realizing some profits following the recent price surge, the scale of these sales remains modest compared to past market peaks.

The current level suggests a possible short-term correction, but not one strong enough to reverse the broader bullish trend. In contrast to the significant NRPL spikes seen during previous cycle tops in March and November 2024, the present level of profit-taking is relatively low. This indicates that most investors are still holding rather than selling in large numbers.

Based on this analysis, there is little evidence to suggest the upward cycle is ending. The current market behavior points to continued strength in Bitcoin’s rally, with no clear signs of a transition into a downtrend.

Whale Buys and BCMI Jump Support Accumulation Thesis

Accumulation trends among certain major Bitcoin holders are becoming increasingly evident. For instance, addresses holding between 1,000 and 10,000 BTC, excluding exchanges and miners, are increasing, indicating large holder accumulation. This trend reflects growing investor confidence, which has historically been associated with rising Bitcoin prices.

In fact, in the last 48 hours alone, whales have bought over 20,000 BTC, according to an update shared by crypto analyst Ali Martinez.

Additionally, CryptoQuant’s BCMI has climbed sharply, with the 7-day SMA reaching 0.6 by May 29th – an early signal of potential market upside. The 90-day SMA remains at 0.45, which is indicative of a stable and non-overheated environment.

This composite index includes metrics like MVRV, NUPL, SOPR, and sentiment indicators to assess cycle positioning. With profit realization slowing and stronger on-chain signals emerging, the market may be entering the early stages of an accumulation phase.

TL;DR

• BTC whales have returned in full force, accumulating more than $2 billion worth of the cryptocurrency in a short timeframe.
• The rising exchange outflows and other essential factors are also bullish factors, suggesting that the asset’s price may head north soon.

Whales Filled Their Bags

The renowned analyst Ali Martinez unveiled on X that large investors scooped up more than 20,000 BTC in the past two days alone.

Whales have bought over 20,000 #Bitcoin $BTC in the last 48 hours! pic.twitter.com/cCmQOpUV8X

— Ali (@ali_charts) May 29, 2025

According to Martinez’s chart, the collective bitcoin holdings of this investor cohort are just north of 4.7 million assets, which represents around 23.7% of the circulating supply. 

Accumulation from whales is generally viewed as a bullish factor that may be a precursor of a price rally. It shows that such investors have increased their confidence in the asset, which could encourage smaller players to join the bandwagon as well. 

Numerous X users reacted to the post, with some assuming that Michael Saylor could be among the individuals contributing to the buying spree. The company he co-founded has become the world’s largest corporate holder of bitcoin, while he personally owns over 17,000 BTC, as he confirmed last year. 

Additional Bullish Elements

The aforementioned actions of the whales are not the only factor suggesting that the price of BTC could be on the verge of a rally. Over the past month, the supply of the asset on exchanges has dried up. Ali Martinez revealed that 30,000 BTC had been moved off centralized platforms within the timeframe, while the chart below shows that the exchange netflows were positive in only seven out of the last 30 days. 

This suggests a shift from these entities toward self-custody solutions, which reduces the immediate selling pressure. 

Bitcoin’s Relative Strength Index (RSI) should also be taken into account. The momentum oscillator measures the speed and magnitude of recent price changes and varies from 0 to 100.

When the ratio drops below 30, it typically indicates that the asset may be oversold and could be poised for a resurgence. Conversely, anything above 70 is interpreted as a bearish element. Over the past several hours, the RSI has been on a downward trend, currently standing just north of the lower mark. 

Those willing to observe additional factors that may trigger enhanced volatility in BTC’s price in the short term can refer to our dedicated article here.