Bitcoin Whales Profits Surge 38% As Price Tests $95K Resistance

Bitcoin is currently testing the $95K resistance level, with several indicators suggesting potential market volatility. Whales, who hold between 1,000 to 10,000 BTC, have seen their unrealized profits surge by approximately 38% since the start of April, reaching $150 billion. Historically, when these profits approach $200 billion, whales tend to take profits, which could slow Bitcoin’s upward momentum. This significant increase in whale profits signals potential shifts in market sentiment, raising questions about whether Bitcoin can sustain its upward trajectory or face a price correction.

At the time of writing, Bitcoin was trading at $94,811.68, following a modest 0.16% uptick over the last 24 hours. The MVRV ratio, which stands at 2.37, indicates potential overvaluation. This ratio suggests that Bitcoin may be trading above its “fair” value, as measured by the average price at which coins were last moved on the blockchain. Historically, a high MVRV ratio has often hinted at the beginning of a market correction. Additionally, the Stock-to-Flow ratio for BTC has surged to 725.39, signaling increasing scarcity. This metric reflects Bitcoin’s diminishing supply over time and is traditionally a long-term bullish indicator. As Bitcoin becomes more scarce, its value could rise, provided demand remains strong.

Bitcoin’s network activity has been robust, with 808.82k daily active addresses and 392.47k transactions recorded. These numbers hint at a growing level of adoption and transactional activity, supporting the bullish narrative for Bitcoin. Strong network activity is often correlated with greater investor demand, which could further fuel Bitcoin’s rally. As the number of active addresses continues to rise, the demand for BTC may climb too, potentially pushing the price higher in the coming weeks.

Bitcoin has been testing critical price levels, including a resistance zone at $95K. The RSI sits at 66.98, indicating that Bitcoin may be approaching overbought conditions. If BTC can break through the $95K resistance, it could target the next level around $105k. However, if it faces rejection, it may test support at $85k. The Bollinger Bands underline that BTC is near the upper range, further supporting the idea that the asset could face a pullback if momentum stalls.

In summary, while the current landscape appears favorable for Bitcoin with rising whale profits and network activity, the overshadowing challenge of high MVRV and key resistance levels raises uncertainty. Stakeholders should closely monitor these indicators to better navigate potential market shifts in the coming weeks.