Bitcoin Whales Accumulate as Price Volatility Persists

Bitcoin's price has been volatile in recent weeks, with a significant movement of 49,700 dormant bitcoins. This has raised questions about the future direction of the cryptocurrency's price. On-chain data from February reveals the emergence of 135 new Bitcoin whale wallets holding 100+ BTC, indicating significant accumulation above the BTC price of $97,500. This has established a strong support level, and a successful breakout above $101,000 could trigger a stronger bull rally to new all-time highs.

Bitcoin whales have been accumulating at every dip during the massive BTC price volatility over the past week. This accumulation is likely the reason behind BTC's quick bounce to $100K after crashing to $90K earlier this week. On the other hand, small retail investors, particularly those who entered the market in the past six months, sold off during the recent correction. Wallets holding less than 100 BTC dropped by 138,680 during the February period, indicating a shift in Bitcoin supply from weak hands to strong hands.

Glassnode's Cost Basis Distribution (CBD) data reveals significant Bitcoin accumulation activity, with approximately 200,000 BTC purchased above $97,500. This accumulation explains the strong support level that prevented further price declines during two recent downturns last month. As of press time, the Bitcoin price is trading at $97,601, with its daily trading volume plunging 35%, falling under $47 billion. Also, the 24-hour liquidations have soared to $36 million with $23 million in long liquidations.

Popular crypto analyst Rekt Capital noted that Bitcoin is testing its diagonal trendline support level as prices consolidate between $98,000 and $101,000. According to analyst Rekt Capital, early signs of a potential higher low formation are emerging. Price stability at current levels could pave the way for Bitcoin to retest the $101,000 resistance.

Bitcoin could be headed for a "decisive price move" in the coming weeks as the US decides on its next Bitcoin move, amid other macroeconomic developments. Some analysts anticipate that direction is likely upward, as Bitcoin (B