Bitcoin’s price recently topped $87,000 due to macroeconomic support and whale accumulation. Major addresses purchased 53,652 BTC for $4.7 billion, indicating confidence despite falling long-term holder profits. The market’s dominance by short-term holders poses risks as selling pressure could impact prices. Bitcoin aims to maintain support at $86,822, targeting $90,000, while potential declines could see prices drop to $82,503 if below key levels.
Bitcoin has recently surged in value, reaching a monthly high exceeding $87,000, attributable to positive macroeconomic factors and increased confidence from significant investors. However, profits for long-term holders have decreased to a two-year low, which suggests a more cautious stance among some market participants that could affect future price movements.
Major holders of Bitcoin, referred to as whales and sharks, have aggressively accumulated the cryptocurrency during this price dip. In the last month alone, these addresses, controlling between 10 and 10,000 BTC, have acquired approximately 53,652 BTC. This accumulation, valued at nearly $4.7 billion, signals a strong belief in Bitcoin’s long-term value among large investors despite market volatility.
Current metrics indicate a prevailing influence of short-term holders (STHs) over long-term holders (LTHs), as reflected in the MVRV Long/Short Difference indicator, which has hit a two-year low. While this trend illustrates significant whale accumulation, it raises concerns; the predominance of STHs might indicate a potential selling situation that could exert downward pressure on Bitcoin’s price if STHs choose to liquidate their holdings.
As of now, Bitcoin is trading around $87,463, maintaining support at $86,822. A failure to uphold this support level could signal a serious downturn, with subsequent support at $85,204 and potentially as low as $82,503. Conversely, if Bitcoin secures support at $86,822, it may aim to breach the crucial resistance at $89,800, with the $90,000 mark being a significant target for sustaining bullish momentum and investor confidence.
