Bitcoin Momentum Slows as Whale Acquisitions Drop 50%

Bitcoin's price has shown signs of cooling as it approaches the $112,000 mark. CryptoQuant’s Research Director Julio Moreno noted a deceleration in Bitcoin’s momentum, with spot market demand expanding at a pace below historical averages. This suggests a potential plateau in buying activity, as acquisitions by whales and Bitcoin ETFs have diminished by approximately 50%. This cautious stance among large-scale investors indicates a shift in investor sentiment, with new market participants also waning.

In the futures market, traders have begun to realize profits and initiate short positions, suggesting anticipation of a price correction. This behavior underscores a more conservative approach amid current market conditions. If demand remains subdued, Bitcoin is likely to find critical support near the $92,000 level, aligning with the on-chain realized cost—a key metric for gauging trader break-even points during bullish phases. A breach of this threshold could expose the cryptocurrency to further downside risk, with the next significant support anticipated around $81,000, corresponding to the lower boundary of realized cost metrics.

The deceleration in Bitcoin’s momentum and the reduction in acquisitions by whales and ETFs signal a potential shift in market dynamics. The cautious stance of large-scale investors and the realization of profits in the futures market suggest that traders are preparing for a possible correction. The critical support levels at $92,000 and $81,000 provide important benchmarks for assessing the potential downside risk for Bitcoin. As the market continues to evolve, these support levels will be crucial in determining the cryptocurrency's future price movements.