Bitcoin Aims for $111,600 as Golden Cross Looms, Whales Reduce Holdings

Bitcoin is currently attempting to regain its short-term bullish momentum, as evidenced by its price movements over the past 24 hours. After briefly dipping below $104,500, the cryptocurrency rebounded to trade above $106,000. Technical analysis now indicates a potential formation that could initiate a more sustained rally.

According to analyst Titan of Crypto, Bitcoin is on the brink of confirming a golden cross, a bullish signal, within the coming days. This is evident in the daily Ichimoku chart, where the Tenkan line, also known as the conversion line, has shown a strong technical signal for Bitcoin. The Tenkan line is a key indicator for short-term trend strength in Ichimoku analysis. The current setup suggests that the conditions are aligning for a golden cross, where the shorter-term average overtakes the longer-term one. This crossover, if confirmed, would be one of the most reliable trend-reversal patterns in technical trading.

Currently, Bitcoin’s price action is consolidating around $105,000. If the golden cross materializes, Bitcoin could attempt another run toward the key resistance level around $111,600. However, the current geopolitical instability, particularly the rising tensions in the Middle East, poses a significant threat to this technical outlook and could disrupt the bullish momentum at any moment.

Despite the bullish technical indicators, other market signals are flashing warnings for Bitcoin. Analyst Ali Martinez identified $104,124 as a crucial support level for Bitcoin. This price point is significant because it represents a heavy concentration of UTXO realized prices. Many investors bought in at this level, and if Bitcoin falls below it, the next likely destination could be $97,405. The URPD chart confirms that the safety net between $104,000 and $97,000 is somewhat thin, indicating that once $104,000 is breached to the downside, a swift and steep correction could follow due to the lack of strong buying interest in that gap.

Adding to the complexity, the behavior of large Bitcoin holders is also a concern. On-chain data shows that some of the biggest whales, addresses holding over 1,000 BTC, have started reducing their holdings in recent days. This decline in whale wallet count initially began shortly after Bitcoin reached its new all-time high of $111,800 on May 22. The reduction in whale count resumed again after Bitcoin was rejected at the $110,000 region early last week. As such, whale addresses holding over 1,000 BTC have fallen from a recent peak of 2,114 to a recent reading of 2,094 addresses. At the time of writing, Bitcoin is trading at $105,505.