TL;DR
- Bitcoin whales have withdrawn large amounts of BTC from exchanges, signaling long-term confidence.
- The weakening U.S. dollar could further boost Bitcoin’s price, potentially surpassing the $97,000 barrier.
- Despite the current consolidation, Bitcoin may be poised for a significant move, either upward or downward, depending on upcoming market shifts.
Bitcoin is approaching the $97,000 resistance level as whales continue to withdraw large amounts of BTC from exchanges, indicating long-term confidence. A recent withdrawal of 568 BTC, worth $55 million, reinforces this idea. This pattern could push Bitcoin toward $99,500. Additionally, the weakening U.S. dollar could benefit Bitcoin, as investors seek alternative stores of value. Institutional investors are also closely watching these movements, as historical trends suggest that significant whale activity often precedes major price swings. Moreover, on-chain data indicates a steady decline in exchange reserves, which could further reduce selling pressure and contribute to potential price stability. If the trend continues, Bitcoin could surpass $97,000; however, a dollar rebound could halt its ascent, keeping it within its current range.
Bitcoin Is Ready for a Major Move
Despite signs of consolidation, Bitcoin is at a critical stage where any pressure could trigger a significant move, either upward or downward. The Choppiness Index indicates high volatility on daily and weekly charts, suggesting that Bitcoin needs to establish a clear direction before making an aggressive move. Over the past 90 days, Bitcoin’s price range has fluctuated around 16% between its highs and lows, indicating that pressure is steadily building up.
This behavior resembles the pattern seen in August 2023, when a phase of low volatility preceded explosive upward movements. However, before these moves occurred, the price wiped out traders who were unprepared due to the lack of volatility. In the short term, the Spending Output Profit Ratio (SOPR) is in a balance zone, but sudden moves up or down could trigger liquidations and panic among traders.
In the coming days, if buying pressure fails to sustain the bullish push, support levels are around $92,000, with the 200-day EMA ranging between $80,000 and $89,000. This suggests that traders positioning themselves at breakout levels might be caught off guard by a pullback, and the trend could follow its expected course once volatility subsides. Market tension is high, and the next move could be crucial in determining Bitcoin’s short- and medium-term direction amid increasing market speculation.
