Bitcoin Wallets Shift to 'Buy Mode' - Is a Bullish Reversal Coming?

Bitcoin [BTC] is showing signs of a potential shift, with recent data indicating a significant increase in long positions in the $101,000 to $106,000 range.

Although price pullbacks may trigger liquidations, on-chain indicators show that retail investors and large holders are actively accumulating.

This growing confidence suggests that the market may be entering the early stages of a bullish reversal.

Recent data from Glassnode indicates a noticeable change in market behavior, with almost all wallet sizes showing an accumulation trend.

Small holders with less than 1 BTC have reversed previous distribution trends and are now slightly accumulating, with an accumulation score of about 0.55.

Meanwhile, wallets holding 100-1,000 BTC and 1,000-10,000 BTC are showing a stronger accumulation trend.

The only range still in a net distribution mode is the 1-10 BTC range, reinforcing the general recovery of market confidence in Bitcoin's price trends.

Concentration of Long Positions May Amplify Downward Volatility

Long positions concentrated between $101,000 and $106,000 create a high-risk liquidity zone.

According to Alphractal, this structure increases the likelihood of the market experiencing a severe liquidation chain reaction, especially if Bitcoin's price falls below the $100,000 threshold.

In contrast, the likelihood of short liquidations occurring during Bitcoin's upward movement seems relatively limited. Due to the significant concentration of long positions in this area, any signs of weakness in BTC could quickly evolve into forced selling and exacerbate volatility.

Price Stalls Near Resistance

From the daily chart, BTC shows signs of weakness near $106,000. Although BTC briefly reached $106,813, it failed to close above this key resistance level and has slightly declined to $105,504 as of the time of writing.

As of this writing, the Relative Strength Index (RSI) is at 69.42, just below the overbought threshold, indicating that bullish momentum is waning.

Meanwhile, the On-Balance Volume (OBV) has flattened around -86.6K, suggesting that buying pressure has weakened.