Bitcoin Surges 3% After Whales Accumulate 81,000 BTC

Bitcoin experienced a significant drop, with prices plummeting below $95,000, retreating to as low as $93,395. However, buyers emerged around the $94,000 mark, halting the decline and allowing Bitcoin to recover swiftly. The cryptocurrency then began to rise again, breaking through pivotal levels that had previously served as resistance.

Bitcoin's rebound was swift and decisive. It broke above $94,600 and even surpassed a bearish trendline at around $94,755. This opened the door for further gains, with Bitcoin continuing to breach above $96,500 and inching closer to the $97,000 level. The 100-hour Simple Moving Average being below the current price is generally seen as a bullish indicator for momentum.

Currently, traders are closely watching whether Bitcoin will break above $97,000. If this occurs, the next targets could be $98,800 or even $100,000, a price level that has been a top target for many traders in recent months.

Large holders, or whales, are showing increased confidence. Wallets holding between 10 and 10,000 BTC have accumulated more than 81,000 BTC in the last six weeks. These wallets typically belong to institutions or long-term investors who prefer to buy when prices are relatively stable or low. This accumulation suggests a bullish sentiment among major stakeholders, aligning with the push toward the $100,000 mark.

In contrast, smaller holders owning less than 0.1 BTC have sold off 290 BTC in the same period. This difference in behavior between large and small holders is noteworthy, as similar trends have historically been followed by strong price surges.

Many short sellers who bet on lower prices were caught out around $95,600. When Bitcoin broke above this level, short positions exceeding $730 million were liquidated. This move lifted morale among bullish traders and generated fresh momentum within the market. Further liquidations could occur if Bitcoin continues to climb.

The derivatives market is also reflecting a bullish sentiment. Long positions are valued at approximately $2.14 billion, compared to $2 billion in short positions. This discrepancy, while not enormous, is sufficient to tip the balance towards the bulls. If Bitcoin cannot remain above $97,750, it could fall slightly to support levels around $96,650, $95,400, or $95,200. Further support awaits at $94,400 and then $93,100. However, the overall sentiment remains upbeat, with everyone watching the $100,000 barrier closely.