Bitcoin Whales Accumulate as Price Hovers Near $97K Resistance

Bitcoin's price is currently hovering around $96,000, having declined by nearly 1% over the past 24 hours, with a trading volume of $15.55 billion. The cryptocurrency is struggling to break above the $97,000 resistance level, which aligns with the 50-Day Exponential Moving Average (EMA). This level is crucial for determining Bitcoin's next move, as a breakout could trigger a bullish rally, while a rejection may lead to a pullback.

Whale activity has been painting an interesting picture. Data reveals that large Bitcoin holders ramped up their buying in mid-February, with inflows increasing from 100.77 BTC to 7,460 BTC by February 20. Outflows also peaked mid-month but have since dropped to 920.64 BTC, signaling reduced selling pressure. This disparity between inflows and outflows suggests aggressive accumulation by whales, which is typically a bullish indicator.

This accumulation phase is happening amid Bitcoin's price consolidation, reflecting market indecision. If Bitcoin can clear the $97,000 resistance, it could target the next resistance at $98,500, followed by the psychological $100,000 level. Conversely, failure to break above $97,000 may trigger a pullback to immediate support at $95,000, potentially leading to a retest of $93,500 or even $92,000.

The global M2 money supply is increasing, signaling higher market liquidity. This is crucial for Bitcoin, as more liquidity often leads to increased investment in digital assets. Analysts believe Bitcoin could mirror this upward trend, especially if central banks adopt looser monetary policies. Investors are watching for potential rate cuts from the Federal Reserve, which could inject more liquidity into financial markets and possibly boost Bitcoin's price. Historically, Bitcoin performs well in high-liquidity environments, attracting both institutional and retail investors.

However, market sentiment remains cautious. Bitcoin ETFs are showing negative flows, and exchange activity is at multi-year lows, reflecting regulatory uncertainties and economic pressures. Despite this, large holders are accumulating Bitcoin, hinting at optimism for a bullish reversal once sentiment shifts.

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