Bitcoin is currently experiencing a widespread accumulation phase from various wallet groups, with signs of tightening supply signaling potential strong volatility around the $120,000 mark.
The consensus accumulation momentum between whales and small investors shows strong confidence in Bitcoin's long-term bullish trend, despite signs of short-term caution from inflows to exchanges and high leveraged positions.
MAIN CONTENT
Bitcoin wallets from small to whale have been accumulating the most since December 2024.
The Stock-to-Flow ratio has increased by 37.5%, indicating a clear signal of supply scarcity.
Leveraged positions concentrated around $120,000 pose a potential risk of high volatility, warning of short-term profit-taking reactions.
How are Bitcoin wallets accumulating?
According to Glassnode's report, the accumulation phenomenon is occurring uniformly across all wallet sizes, with whales above 10,000 BTC showing unprecedented activity since late 2024. This reflects the strong confidence of both retail investors and large institutions in the current bullish trend.
The combination of wallet groups suggests that it is not just a spontaneous event but a long-term trend, reinforcing the likelihood that Bitcoin is preparing for a new price surge.
How does Bitcoin's supply volatility affect its price?
According to data from CryptoQuant, Bitcoin's Stock-to-Flow ratio has increased by 37.5% to 795,800, indicating that new supply is becoming increasingly scarce as the circulating Bitcoin supply grows much slower than the amount of newly mined coins. This is a classic metric used to evaluate the rarity of an asset.
History shows that periods of high Stock-to-Flow often signal strong bullish cycles. Increasing scarcity will drive interest and long-term holding, reducing short-term selling pressure, thereby facilitating a sustainable price increase.
Bitcoin’s stock-to-flow ratio increase reflects a tightening supply that historically precedes bullish markets, reinforcing confidence in Bitcoin’s value proposition.
Mike McGlone, Senior Commodity Strategist, Bloomberg Intelligence, 2025
How are inflows and outflows to exchanges affecting the market?
Currently, the amount of Bitcoin flowing into exchanges has a net inflow of $9.51 million, marking a reversal from the long-standing coin withdrawal state. This inflow indicates increased selling pressure in the short term as investors move Bitcoin to hot wallets for trading or selling.
Although not yet a dominant trend, this is a warning signal for potential price corrections or profit-taking that may occur before the strong resistance near $120,000.
What does the MVRV index mean for investors?
According to analysis from Santiment, Bitcoin's MVRV currently stands at 147.63%, meaning that on average, investors are in profit. History shows that high MVRV periods often encourage profit-taking as investors recover capital in the short term.
However, the simultaneous increase in accumulation from large groups along with rising scarcity creates a balancing force, while maintaining confidence that long-term holders remain steadfast, avoiding panic selling.
What significance does the $120,000 threshold hold for Bitcoin?
The liquidation heatmap on CoinGlass indicates that many leveraged positions have been tightly established just below the $120,000 level. This is a sensitive point that could trigger a rapid liquidation chain reaction, leading to significant market volatility.
If Bitcoin breaks through this threshold with the current accumulation and leverage foundation, it could create a short squeeze effect; conversely, if rejected, the price could drop sharply. This makes $120,000 a crucial decision point for both traders and long-term investors.
The $120K level acts as a critical battleground where trader actions could define Bitcoin’s short-term trajectory, balancing between breakout and sharp correction.
Alex Mashinsky, CEO of Celsius Network, 2025
Will long-term confidence overcome short-term selling pressure?
Data regarding accumulation, increasingly scarce supply, and existing profits reinforce the bullish outlook for Bitcoin. However, inflows to exchanges and leveraged positions are still putting significant psychological pressure on many traders in the short term.
Price action around the $120,000 threshold will determine the balance between positive signals from long-term investors and the risk of correction from profit-taking and position liquidations. Therefore, closely monitoring market sentiment and related indicators in the upcoming period is essential.
Frequently Asked Questions
Where is Bitcoin being accumulated the most?
Based on Glassnode's report, wallets holding 10,000 BTC or more are accumulating the most, indicating that large whales are holding a significant proportion.
What does Bitcoin's Stock-to-Flow ratio represent?
Stock-to-Flow shows the scarcity of Bitcoin; a high ratio often signals a bullish trend due to limited new supply.
What impact do increased inflows to exchanges have on price?
Increased inflows to exchanges signal rising short-term selling pressure, creating risks for price corrections but not necessarily indicating a long-term trend.
How to determine the right time to take profits based on MVRV?
When MVRV is high, it means that the majority of investors are in profit; this is a time when many consider taking profits to secure gains.
How important is the $120,000 threshold?
This point is a concentration zone for large leveraged positions, which could cause significant volatility and determine Bitcoin's price trend in the short term.
Source: https://tintucbitcoin.com/bitcoin-whale-tich-tru-test-120k-usd/
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