Bitcoin Whales Accumulate 300% Supply as Price Stalls at $85K

Bitcoin whales are accumulating three times the daily mined supply, indicating a bullish sentiment towards the cryptocurrency. However, Bitcoin’s price is currently constrained under the $86,000 resistance level. While bullish indicators are present, low trading volume necessitates caution. Traders are advised to watch for volume increases and confirm breakouts above key levels before making trades.

Bitcoin whales, defined as wallets holding between 100 and 1,000 BTC, are currently buying three times the daily mined supply, indicating a strong accumulation phase. Analysis by Glassnode reveals that these large holders are significantly increasing their investments, opting for long-term strategies rather than short-term speculation. As these purchases occur, exchange outflows are also rising, with whales transferring their coins to cold storage, which decreases selling pressure and signals confidence in Bitcoin’s future.

At present, Bitcoin is priced at approximately $85,120, facing resistance around the $86,000 mark, which has prevented upward movement for several weeks. The price is forming a tighter range, with support identified around $84,300. The crucial 50 Exponential Moving Average (EMA) and 200 EMA are located just below this support level at $84,200 and $84,180, respectively. Should Bitcoin successfully break above $86,000, potential targets include $87,300 and $88,500; however, sustained buyer conviction is necessary.

Current resistance levels are set at $86,000 (immediate) and $87,300 to $88,500 (next), while support levels include $84,300 (immediate) and deeper support at $83,100 to $81,500. This market setup mirrors conditions from 2020, marked by whale accumulation, dwindling exchange supplies, and resistance squeezes. Although the MACD indicator shows a slight bullish trend, overall trading volume remains low. A decisive break above $86,000 with substantial volume could catalyse further gains, whereas a decline below $84,300 may test the $83,100 support level.

In summary, while whales are increasing their Bitcoin holdings, solidifying its fundamentals, the price remains in a consolidation phase. Traders should monitor volume and seek breakout confirmations before making further predictions. Recommended trade setups include entry above $85,500, targeting price points at $87,300 to $88,500, with a stop loss set below $84,000.