Bitcoin Holds Above $105,000 Amid Whale Accumulation and Bullish Predictions

Bitcoin has maintained its position above the $105,000 mark as the Asian business week began, showing relative stability over the weekend with minimal price movement. The world’s largest digital asset exhibited a calm weekend, with price fluctuations limited to around 0.4%. However, beneath this surface stability, certain metrics suggest that the Bitcoin market might be “overheating,” potentially signaling a near-term consolidation phase.

A new report from an on-chain analytics firm suggests that Bitcoin demand has surged significantly, reaching 229,000 BTC over the past 30 days. This figure is rapidly approaching the December 2024 peak demand of 279,000 BTC. Concurrently, balances held by “whales” – large Bitcoin holders – have increased by 2.8 percent. Historically, such a pace of accumulation by whales can often signal a slowing down of their buying activity, potentially preceding a market cool-off. These indicators, taken together, suggest that the current rally, which recently propelled Bitcoin prices to a record high of $112,000, may be approaching a short-term peak.

The report identifies $120,000 as the next major resistance level for Bitcoin. This level is tied to the upper band of the Traders’ On-chain Realized Price, a metric indicating a point where unrealized profits for traders would hit 40 percent – a threshold that has historically coincided with local market tops. Despite these cautionary signals, the “Bull Score Index” remains robust at 80, indicating continued underlying bullish momentum. Nevertheless, the combination of rising profit margins for existing holders and peaking demand growth suggests that traders might face a period of price consolidation before Bitcoin can embark on its next significant upward move.

Adding a highly bullish counterpoint to the near-term caution, a Bitcoin billionaire and co-founder of a prominent cryptocurrency exchange has forecasted a dramatic surge in Bitcoin’s price. He predicts that Bitcoin will more than double within the next six months, potentially reaching an astonishing $250,000. He attributes this optimistic outlook to an anticipated shift in fiscal policies, moving away from market-rattling tariffs towards more stimulative measures. “Midterm elections are coming up,” he told a media outlet during an interview at a conference. While the administration went hard on tariffs and was taking this market pain for the last three months, that narrative has to shift. He argued that instead of pursuing trade policies that could dampen economic growth and potentially impact consumers’ affordability, the president will need to demonstrate that he has “brought goodies for the population.” This, he believes, will be crucial to bolstering prospects at the ballot box in the midterm elections. The mechanism for this, according to him, will involve a more accommodative monetary stance. Such a scenario, involving increased liquidity, is often seen by crypto proponents as highly bullish for assets like Bitcoin, which are perceived as hedges against currency debasement.