After a bullish trend in March Bitcoin’s (BTC )) has slowed down significantly in April. The coin dropped below the $40,000 for the first time in weeks. BTC has been able to offset some of these losses, and this can be largely attributed to increased whale purchasing. These are the key takeaways:

• Institutional investors and other big wallets bought BTC massively at $38,000.

• This buying activity has pushed the coin above $42,000 once again

• Whale accumulation is often a sign that bullish momentum may be around the corner.

Data Source: Tradingview

How will whale activity affect Bitcoin?

In the near future, we anticipate that the Bitcoin price will continue to rise. Large wallets accumulating BTC is often a sign of more gains. At the moment, BTC remains firmly above the crucial; $40,000 mark. We expect consolidation to continue before the mega-cap strides towards $45,000.

It is very difficult however to see any more upside above $45,000. In fact, even during its robust March rally, BTC failed to clear $49,000 and would soon fall sharply after. It is likely that most of the dip buyers we saw at the $38,000 prices are short-term investors.

We expect a majority of them to lock in profit once the coin crosses $45,000. This will lead to a mini sell-off that will return Bitcoin back to $40,000 in the shorter term.

Should you follow the Whales?

Well, the $38,000 price was the most appropriate for BTC investors. But there is enough upside for the coin to hit $45,000 from its current price. You can therefore consider buying and make at least 10% in returns over the coming days. BTC can still be 2x your money if you hold it for the long term.