Bitcoin Sees Confident Buying from Smart Money Amid Dip

Bitcoin Sees Confident Buying from Smart Money Amid Dip – An Overview

In the past week, Bitcoin prices fell to around $65,000, resulting in a total loss of 6.74%. This recent downturn highlights the challenges the asset has faced during March, which, despite attempts for price increases, has seen an equal or larger pullback, culminating in a net monthly loss of 4.4%. Amid this price volatility, the analytics platform Easy On Chain shared an intriguing trend regarding smart money accumulation in the Bitcoin market.

Key Takeaways

Bitcoin experienced a price drop to approximately $65,000, marking a 6.74% loss.
Smart money investors are accumulating Bitcoin despite price volatility.
The Coins Days Destroyed metric shows signs of long-term holders moving their coins.
Miners are holding onto their Bitcoin, decreasing selling activity.
A bullish reversal requires improved demand in the U.S. market and positive signals from exchange premiums.

Bitcoin

Smart Money Shows Bullish Signs Despite Price Drop

In a QuickTake post on March 27, analysts from Easy On Chain revealed that Bitcoin's price drop in March 2026 came alongside a contrasting response from smart money investors, including institutional players and ultra-high net worth individuals (whales). The month started with a surge led by traditional finance (TradFi), as big investors aggressively bought Bitcoin, raising the Fund Market Premium to 2.72 as of March 11. However, this robust demand was followed by a strategic selling phase after Bitcoin reached a local monthly peak of $76,007 on March 17.

This demand decline was reflected in the Exchange Whale Ratio, a key selling indicator that hit 0.835, while the Stablecoin Supply Ratio (SSR), which compares Bitcoin’s market cap to stablecoin supply, reached 10.95, suggesting decreasing buying power. Consequently, Bitcoin saw a consistent correction to $65,000, where short-term holders (STH) faced a negative Net Unrealized Profit/Loss (NUPL), leading to panic among these investors.

Bitcoin Source: CryptoQuant

However, signs of market re-accumulation by long-term holders appeared starting March 22. The Coins Days Destroyed (CDD) hit 27.1 million, indicating movement of coins aged 2-7 years, while there was no significant change in the exchange inflows CDD level at 48,909. Moreover, $2.27 billion worth of ERC-20 USDT was transferred from exchanges, suggesting that whales and institutions were acquiring Bitcoin via over-the-counter (OTC) markets instead of public exchange order books.

Related Reading: What Every XRP Holder Must Understand As Activity Wanes

Miner Activity Supports Accumulation Trend

According to Easy On Chain, the recent actions of Bitcoin miners further endorse this accumulation trend. Selling activity has decreased, with total miner holdings valued at 1,805,235 BTC as of March 27. With current market prices showing a profit margin of 71.4%, these miners face no immediate pressure to sell.

As of now, Bitcoin is trading at $66,003, reflecting a 4.23% loss in the last day. Analysts from Easy On Chain identify a crucial “life line” at $63,200, which represents the realized price for holders who have been invested for 1.5 to 2 years. For a bullish reversal to happen, renewed demand in the U.S. spot market is necessary, characterized by both Coinbase and Fund Premiums turning positive.

Bitcoin BTC trading at $66,297 on the daily chart | Source: BTCUSDT chart on Tradingview.com