Bitcoin Price Consolidates After Pullback, Institutions Accumulating
Following a recent pullback, the Bitcoin price has been consolidating within a range after facing rejection from the highs. Despite this, the pullback seems to have formed another higher low, keeping the possibility of a breakout alive. In the past few days, institutions have been aggressively accumulating Bitcoin, with some like Statergy raising funds to buy more. This renewed bullish momentum has sparked activity among Bitcoin cohorts.
Bitcoin Cohorts Activity
The Bitcoin cohorts are groups within the network that help analyze trend patterns and economic behaviors related to BTC transactions. Unfortunately, spending by older BTC holders has reached a high point. The aggregate volume of 1-year to 5-year cohorts has surged above $4 billion, indicating that older coins are on the move.
This surge in activity is the first of its kind since February 2025. The 3-year to 5-year cohort alone contributed $2.16 billion out of the total $4 billion, marking their second-largest outflow. The 2-3 year and 1-2 year cohorts contributed $1.41 billion and $450 million, respectively. Historically, changes in their positions have triggered interim BTC peaks, such as in Q4 2024, February, and May 2025. The question now is whether this is a bearish signal for Bitcoin.
Monitoring Bitcoin Price Movement
While the movement of 1-year to 5-year BTC isn’t necessarily a red flag yet, as it appears to be more about institutional accumulation than actual dumping. Exchange netflows are negative, and ETF inflows are rising sharply, indicating potential buying activity. However, if these tokens were to hit the exchanges, a sharp move could be expected. Therefore, closely monitoring the Bitcoin price movement in the coming days is crucial.