TL;DR
- Large investors (whales) have accumulated over 150,000 BTC, reinforcing a key support range between $97,500 and $99,999, while small traders are exiting.
- Bitcoin is forming an ascending wedge pattern and needs to surpass $100,000 to initiate a 7% rally, reaching $106,100, which is crucial for its trend.
- If it fails to break above $100,000, the price could drop to $95,668, invalidating the bullish trend and potentially causing a deeper correction, raising concerns among investors.
Bitcoin continues to show signs of potential recovery, with a validated bullish pattern placing it on the radar of investors. This February, there has been a significant increase in BTC accumulation by large investors, known as “whales,” who have taken advantage of the market’s volatility to strengthen their positions. Unlike smaller traders, who are liquidating their assets due to uncertainty and high volatility, these large players appear to have an optimistic long-term view on Bitcoin’s future, signaling confidence in its upcoming price movement. In February, an increase of 135 wallets holding more than 100 BTC was observed, while on the other hand, there was a decline of 138,680 wallets with less than 100 BTC.
One of the key points in this analysis is the support formed between $97,500 and $99,999, where nearly 200,000 BTC have been accumulated in recent months. This price range serves as a stabilizing level, reinforcing the idea that Bitcoin could be building a solid base for a possible upward movement.
Is a breakout on the horizon?
The behavior of the whales, who are increasing their market share while retail traders are exiting, marks a clear distinction between experienced investors and newcomers. This phenomenon could be setting the stage for an upcoming bullish move, but it all depends on how price action evolves around the $100,000 level and the overall sentiment within the market. The rise of whale accumulation, in particular, suggests that more institutional money is entering the market, potentially driving the next phase of growth.
According to technical analysis, Bitcoin is forming an ascending wedge pattern, suggesting it could be preparing for an upward breakout. To validate this pattern and reach its next target of $106,100, Bitcoin needs to break above $100,000. If buyers manage to maintain bullish pressure, BTC could experience a 7% rally, breaking the wedge and extending its move.
However, if it fails to overcome the psychological barrier of $100,000, there is a risk that Bitcoin’s price could retreat to levels near $95,668, which would invalidate the bullish outlook and potentially trigger a deeper pullback. In this context, investors should stay alert to the next moves and keep track of the whales’ accumulation trends and overall market behavior.
