Growing Whale Accumulation Purchases Keep Hope Alive As Bitcoin and Ethereum Drop Into Critical Zones

Bitcoin and Ethereum prices have been falling steadily to their lowest point since early 2025, and are now erasing year-to-date gains. Nonetheless, according to a CryptoQuant analysis, Bitcoin has entered the most bearish period since the boom market two years ago.

The sentiment index has also plunged to its lowest point in almost four years, keeping hopes alive for a potential reversal. Bitcoin and Ethereum whale accumulation have significantly increased, which may be an indicator of a potential crypto market recovery.

Bitcoin Drops To $85K, But Better Times May Be Ahead

It’s been a brutal stretch for Bitcoin, which was recently flying to a new all-time high as recently as early October. On Thursday, the price of Bitcoin plunged to a low of under $85,000. The BTC price has decreased by approximately 14% since last week.

This is the lowest the Bitcoin price has been at since April 2025. Also, as a result of the decline, the Bitcoin price has lost all its gains this year, down by -8% YTD. The Bitcoin decline has been fueled by a sharp repricing in expectations for a December Fed rate cut has fueled the selloff.

Vetle Lunde, head of research at K33, explained that previous drawdowns in Bitcoin bull markets last more than 50 days, and the current one is only on day 43. With the end in sight, there are other on-chain metrics that suggest that Bitcoin could have bottomed out. 

The Crypto Fear and Greed index has dropped to 10 for the first time since July 2022. When this market sentiment drops to historic lows, it often hints that a price resurgence could happen soon. 

Also, Onchain Lens has reported that dormant Bitcoin whales have resurfaced, another sign that the market could move up soon. The BTC short-term rebound looks highly likely to happen, with Cas Abbé, who could rally above the $100,000 level from here.

Ethereum Bleeds To $2,800, Could a Bottom Be in?

Similar to Bitcoin, the Ethereum price temporarily fell under a critical point of $2,800 on Wednesday. Even though the Ethereum price is now testing this crucial on-chain support level, which in the past indicated market bottoms, there are positive signals that may be observed.

In an on-chain analysis conducted by analyst MAC_D, this price level denotes a concentration of the so-called realized price of both retail and large-scale investors, indicating that a basis of a possible recovery is being established despite the smaller wallets purging.

Besides this, fading forced-selling pressure can also be seen in the liquidation data. MAC_D pointed out that every fresh local low is accompanied by many less significant waves of liquidations, which is an indication that any over-leveraged bulls might have already been cleared.

The expert also believes that the change in supply between impatient traders and larger, more long-term players is also typical of late-stage bottom formation. If the Ethereum price rebounds to $3,000, then the potential rebound could begin.

In Summary

Although the Bitcoin and Ethereum prices have been falling, on-chain analysis point to a potential short-term relief rally. However, the price action over the next few days could determing if the correction is over or we have entered into a bear market.