Whale and institutional demand for Bitcoin is showing promising signs of recovery, despite lingering downside risks. Analysts are now predicting that BTC may retest the crucial support level around $66,000. The recent market activity has been characterized by significant accumulation, as large investors took advantage of a price dip to buy in at $60,000. This strategic move has led to a remarkable 17% rebound, with Bitcoin trading near $70,000 after hitting a 15-month low.

Recent data reveals that these whales have collectively acquired approximately 40,000 BTC during this price dip. Specifically, addresses holding between 1,000 and 10,000 BTC have added around 22,000 BTC, while those with larger holdings, between 10,000 and 100,000 BTC, have accumulated about 18,000 BTC. This shift suggests that large investors are actively positioning themselves in anticipation of a potential price recovery.

The surge in whale activity can also be linked to buying from Binance’s Secure Asset Fund for Users (SAFU), which recently added 4,225 BTC, equating to about $300 million. This fund now holds a total of 10,455 BTC, valued at approximately $731 million. The recent influx of investment into U.S.-based spot Bitcoin ETFs has further contributed to the bullish sentiment, with $331 million flowing into these products during the dip.

Despite the positive accumulation by whales, Bitcoin has struggled to break above the $72,000 resistance level. This has raised concerns among analysts that the price could be poised for a downward move if it fails to maintain its current momentum. Notably, in January, a similar accumulation pattern led to a subsequent price surge, followed by a sharp decline. The current market dynamics indicate that Bitcoin might be on a similar trajectory.

The immediate support zone to watch is between $66,000 and $68,000. This level coincides with the 200-week EMA, a critical indicator for long-term price movements. Analysts are divided on whether Bitcoin has truly found a bottom, with some suggesting that a retest of the lower trendline could signal an impending downtrend.

TexasWest Capital founder Christopher Inks noted that while the path of least resistance may currently be upward or sideways, Bitcoin has yet to establish a solid footing. He emphasized the importance of maintaining a weekly close above $75,000 to build bullish momentum.

As the market continues to evolve, many are keeping a close eye on Bitcoin's performance as it navigates these critical levels. The uncertainty surrounding whether Bitcoin has reached a true bottom remains a topic of discussion, with some analysts projecting a possible drop to around $50,000, reminiscent of the bear market of 2022. It’s crucial for investors to stay informed and vigilant as the landscape shifts, keeping in mind the inherent risks associated with cryptocurrency investments. This situation underscores the importance of conducting thorough research and understanding market dynamics before making any decisions.