Whales are accumulating Bitcoin: market sentiment analysis
Whales continue to increase their positions, creating sustained demand in the market, reducing available supply, and thus supporting prices. The indicator of cumulative balances in whale accounts, calculated by CryptoQuant, reflects the true balances of large holders, excluding exchange and mining pool addresses.
According to CryptoQuant analyst JA Maartunn, the growing balances in whale accounts indicate increasing confidence from institutional investors: they see dips as buying opportunities and expect price increases in the future.
General holdings of Bitcoin whales. Source: CryptoQuant
Other indicators confirm an optimistic scenario. Hash Ribbons have signaled a buy. This means that the process of miner capitulation has ended and the market will soon enter a bullish phase. For the signal to be confirmed, the recovery of hash rate must be accompanied by upward price dynamics and a rise in the 10-day SMA of Bitcoin above the 20-day SMA.
At the level of price dynamics, Bitcoin demonstrates resilience to external shocks. After a brief drop below $101,000, which triggered $1 billion in liquidations, the price quickly recovered above $105,000. The formation of a 'cup and handle' pattern on the daily chart indicates a potential bullish breakout above $108,000. The increase in open interest for futures by $2 billion at low funding rates creates conditions for a potential short squeeze.
For what will happen to Bitcoin (BTC) in June, read the special article on BeInCrypto.
Key Bitcoin levels: technical analysis
Actions of large holders and the situation with miners form clear boundaries for Bitcoin's trading range. A strong support zone lies between $100,000 and $102,000. It should keep BTC above the psychologically important mark of $100,000 even during short-term corrections. The key resistance zone is in the range of $108,000–$110,000. A successful breakout of these levels could accelerate the move to the next target at $120,000.
Risk factors
Traders need to monitor two key volatility factors:
Potential sales from miners that could quickly change market dynamics.
Macroeconomic news, especially related to the Fed's policy and global trade.
Summing up
Bitcoin is at a crossroads: on one hand, active accumulation by whales and the formation of a 'cup and handle' technical pattern create prerequisites for a breakout above $110,000. On the other hand, potential pressure from miners and macroeconomic uncertainty related to the Fed's policy may trigger a new wave of volatility.
In the coming weeks, a key factor will be BTC's ability to stay above the psychologically important mark of $100,000. This will not only determine the short-term trend but also show how resilient the current bullish cycle is to external shocks.