Bitcoin (BTC) experienced a notable rebound of 8.7%, reaching $107,500 on Tuesday after dipping to a four-month low of $98,900. This surge was largely fueled by whales capitalizing on lower prices to increase their holdings. However, the price faced a correction, retreating to below $103,000 by Thursday, as the $106,000 mark emerged as a formidable resistance.
According to data from CryptoQuant, large holders, referred to as whales, executed their second-largest accumulation of the year, acquiring over 45,000 BTC in a single week. This activity reflects a strategic decision by these significant market players to take advantage of the recent price decline, as highlighted by analyst Caueconomy in a Wednesday Quicktake analysis.
Despite this substantial accumulation, the buying momentum has not translated into a broader recovery pattern. Analysts from Glassnode noted the necessity for “renewed conviction and stronger demand from new market entrants,” including day traders and retail investors, to push the price above the critical $106,000 threshold.
Notably, not all whales are in accumulation mode. Long-term holder Owen Gunden has been liquidating some of his assets, transferring 2,401 BTC, valued at approximately $245 million, to Kraken on Thursday. This trend raises concerns about the long-term confidence of Bitcoin holders, particularly as many OG holders have been moving significant amounts of BTC to exchanges.
The BTC/USD pair”s failure to breach the $106,000 resistance has halted what many hoped would be a rally back to bullish conditions. Analysis indicates that there is a dense supply cluster between $106,000 and $118,000, which continues to limit upward momentum. This range is utilized by numerous investors to exit positions near their breakeven points.
According to Glassnode, approximately 417,750 BTC is held by investors at an average cost between $106,000 and $107,200, solidifying this area as a resistance zone. Analysts suggest that the BTC/USD pair must convert this resistance into support to aim for higher levels above $110,000.
Technical analysts are observing trends that could indicate a potential breakout. Daan Crypro Trades remarked that BTC is showing upward momentum in lower time frames, while CRYPTO Damus emphasized the importance of breaking above $107,350 to shift sentiment towards bullish. Market participants are keenly watching for a decisive move above $108,000 to potentially signal a new all-time high.
As the market continues to navigate these challenges, it remains crucial for investors to conduct thorough research before making any trading decisions, given the inherent risks associated with cryptocurrency investments.
