Whales Accumulate 130,000 BTC in 30 Days, Driving Bitcoin's 5% Recovery

Whales have withdrawn 110,000 BTC in the past 30 days, indicating a significant accumulation of the cryptocurrency. This aggressive accumulation by large investors suggests a potential upside momentum for Bitcoin, which has been recovering impressively over the past few days. The withdrawal of such a large amount of BTC from exchanges signals that these investors are confident in the long-term prospects of the asset and are positioning themselves for further price increases.

This trend of accumulation by whales has been ongoing, with an additional 20,000 BTC added to their wallets in just 48 hours. This continuous buying reflects the whales' interest and confidence in Bitcoin, which could lead to increased buying pressure and a further rally in the cryptocurrency's price. The recent surge in Bitcoin's price appears to be largely driven by this whale activity, which has ramped up across both spot and derivative markets.

In contrast, retail investors have been largely absent during this period, with many offloading their holdings due to panic. According to on-chain analysts, retail investors typically return near market tops, not during recoveries or corrections. Despite Bitcoin trading just 5% below its previous peak, retail participation has remained muted, which could limit frothy speculation in the short term.

Traders appear to be aligning with the current market sentiment, with significant positions being built at key levels. At the $102,819 support level, traders have built $496.55 million worth of long positions, indicating bullish sentiment. Similarly, at the $104,871 resistance level, $319.26 million worth of short positions have been established, suggesting that traders are hoping to capitalize on any potential price corrections. This metric indicates that bulls are currently dominating the market, with traders positioning themselves for further upside momentum.

Technical analysis of Bitcoin's price action suggests that the cryptocurrency is poised for a new high. The daily chart reveals that Bitcoin is heading toward the key resistance level of $106,800. If this upward momentum continues and the price breaks through this resistance, there is a strong possibility that Bitcoin could experience a notable surge and potentially reach a new all-time high. However, Bitcoin's Relative Strength Index (RSI) stands at 74, indicating that the asset is in overbought territory. This suggests that a price correction could occur until the RSI moves out of the overbought zone.