Whales Trigger Potential Bitcoin Surge

Bitcoin is witnessing a discreet yet impactful shift in market dynamics. After testing levels above $110,000 and seeing a retreat to around $108,000, recent blockchain data indicates a 4.23% increase in the number of addresses holding more than $10 million in bitcoin. This surge in so-called “mega whales” suggests major investors still hold optimistic long-term outlooks for the preeminent cryptocurrency.

Why Are Whales Amassing Bitcoin?

Data from IntoTheBlock shows a notable rise in addresses with holdings of $10 million or more in bitcoin since July. These acquisitions, primarily seen on the blockchain rather than exchanges, cumulatively siphon substantial liquidity. Industry observers often note that such whale accumulation can be a precursor to significant market rallies.

Alongside mega wallets, addresses with BTC holdings between $100,000 and $1 million saw a 2.71% growth. Similarly, those with holdings from $1 million to $10 million experienced a 2.34% increase. This trend signifies acquisitions by both institutional and affluent individual investors. The current RSI of 55 implies bitcoin is not overbought, indicating a medium-term bullish trend with cautious accumulation.

Will Bitcoin Break Past $110,000 Soon?

Technical charts identify $110,000 as a crucial level. Surpassing this mark with strong volume could pave the way for an advance to the psychological $120,000 barrier. As sell orders dwindle, a vigorous bullish movement could capitalize on short positions, swiftly increasing demand.

Historically, whale actions have paved the way to new price highs. If their recent acquisitions propel bitcoin past $120,000, further investment from spot ETFs may follow, bolstering confidence and liquidity in the cryptocurrency. Provided that prices don’t fall below $100,000 for an extended period, the bullish outlook remains intact.

Key insights from the current developments include:

• A 4.23% rise in mega whale addresses since early July.
• Bitcoin’s RSI at 55, suggesting it isn’t overbought.
• Potential for a breakthrough beyond $110,000 and targeting $120,000.

A continued accumulation by significant investors coupled with strategic acquisitions suggests that bitcoin could be on the verge of a considerable uptick. The market is poised for shifts as major players strategically position themselves, indicating potential substantial price rallies on the horizon.