Key Points
- Whales’ steady accumulation of BTC has contributed to the recent price surge.
- Liquidity data suggests that Bitcoin could potentially sustain its price above the $100,000 threshold.
Whales, or large investors, have been consistently buying up Bitcoin (BTC), contributing to the cryptocurrency’s recent price increase. The lack of liquidity below Bitcoin’s current price, coupled with significant resistance levels above, has also played a role in this surge.
Whales Driving the Rally
The recent upswing in Bitcoin’s price is largely due to increased demand from investors. According to cryptocurrency analyst Ali Chart, who used data from Glassnode, whales have been purchasing Bitcoin in large amounts. He pointed to a chart showing 342 wallets, each holding over 100 BTC, taking advantage of Bitcoin’s sharp drop to $90,000. Such activity typically indicates that whales view price dips as buying opportunities, anticipating a subsequent market rally.
Potential for a New High
Analyst Mister Crypto shared liquidity data from Coinglass, suggesting that Bitcoin could be aiming for a new high and potentially maintain its price above the $100,000 mark. Liquidity levels act as magnets that attract price movement, and at the time of writing, Bitcoin has cleared all significant liquidity levels below its current price. The next major resistance point is at $105,000, higher than its previous all-time high of $104,000.
There has been an increase in market liquidity, with Tether (USDT) minting an additional $1 billion at the Tether Treasury. This surge in liquidity indicates a growing demand for USDT, which is often used to purchase cryptocurrencies. As such, Bitcoin, being a popular choice for investors, stands to benefit from this inflow as traders use USDT to buy Bitcoin.
Whale Tracker has also reported that market confidence in Bitcoin is returning. A major holder recently transferred 7,999 BTC—valued at over $800 million—back to secure wallets for safekeeping. Given these factors, it appears increasingly likely that Bitcoin could reach a new all-time high in the near future.