- Amid recent market fears, whales have demonstrated confidence by withdrawing nearly $900M worth of BTC from exchanges.
- Bitcoin was trading at a crucial level, which could determine whether it enters a bear market or sustains its bullish trend.
The current market of Bitcoin [BTC] has been extremely bullish on BTC as traders took out almost $900 million from exchanges. The massive withdrawal was a bullish sign despite the recent market fear as BTC accumulated below $100K.
Recently, whale behavior has shown a shift, with whales selling their positions for over a month. This period of net depletion marked the longest stretch in the past year.
However, this trend has now reversed, evidenced by a resurgence in whale-buying activity. The monthly percent change in whale holdings has turned positive, indicating a probable buildup of bullish momentum.
Source: CryptoQuant
First, consistent BTC withdrawals from exchanges and renewed whale accumulation may signal an impending uptrend.
This trend suggests a strong support level that traders believe will hold, making holding BTC less risky than selling.
Second, continued whale accumulation could trigger a bullish response, pushing prices higher. However, if whales cease accumulating or begin selling, it may indicate waning confidence, potentially increasing selling pressure and causing a price drop.
Will BTC enter a bear market or continue with the bullish trend?
Further analysis indicates that Bitcoin (BTC) has reached a critical pivot point, likely to shape its direction in the coming months.
The Alpha Price suggests that BTC is trading near what many consider the final support line before a potentially significant drop.
Historical data shows that failure to maintain this key support level—highlighted as the third dotted line on the chart—could lead to a reversal or price capitulation. However, Bitcoin’s ability to hold this level last year offers hope for a more positive outlook this time.
Source: Alphractal
This month’s price action resembles that of April and May 2021, marked by significant long liquidations rather than a prolonged bear run.
If Bitcoin remains above the key support level, it may signal a transition to a new accumulation phase, fostering healthy future growth. However, a break below this level could trigger a bearish trend, likely leading to a continued downward movement.
Ultimately, Bitcoin’s ability to sustain a bullish trend or enter a bear market hinges on its performance around these critical price levels.
