Key Points
- Whales have withdrawn 110,000 BTC in the last 30 days, indicating aggressive accumulation and potential upward momentum.
- Traders have positioned $496M in longs near $102.8K and $319M in shorts at $104.8K.
In the past month, whales have withdrawn 110,000 BTC, signaling a period of aggressive accumulation and potential upward momentum. This activity coincides with traders heavily positioning themselves at key levels, with $496M in longs near $102.8K and $319M in shorts at $104.8K.
Whale Activity and Accumulation
Bitcoin [BTC], the world’s largest cryptocurrency, has influenced the overall cryptocurrency market with its recent recovery. This surge seems to be largely driven by whale activity across both spot and derivative markets. Since Bitcoin’s downturn, whales and industry giants have capitalized on the opportunity to buy the dip.
Data on Bitcoin exchange reserves over the past 30 days reveals that whales have withdrawn over 110,000 BTC during this period. This significant withdrawal indicates potential accumulation and could create buying pressure, leading to a further upside rally. Moreover, whales have continued their accumulation, adding another 20,000 BTC to their wallets within 48 hours.
Retail Participation and Trader Sentiment
Conversely, retail investors have largely been absent during this period, often offloading their holdings due to panic. On-chain analysts suggest that retail investors typically return near market tops, not during recoveries or corrections. Despite Bitcoin trading just 5% below its previous peak, retail participation has remained muted.
On-chain analytics tool Coinglass reveals that traders are aligning with the current market sentiment. They are currently overleveraged at the $102,819 level on the lower side and $104,871 on the upper side. At these levels, traders have built $496.55 million worth of long positions and $319.26 million worth of short positions. This indicates that bulls are currently dominating the market, hoping that the Bitcoin price won’t fall below the $102,819 support level.
Bitcoin Price Action and Technical Analysis
According to technical analysis, Bitcoin appears bullish and is poised for a new high. The daily chart reveals that the asset is heading toward the key resistance level of $106,800. If this upward momentum continues and the price breaks through this resistance, there is a strong possibility that Bitcoin could experience a notable surge and potentially reach a new all-time high.
Bitcoin’s Relative Strength Index (RSI) is currently at 74, indicating that the asset is in overbought territory. This suggests a strong possibility of a price correction until the RSI moves out of the overbought zone.