Bitcoin's resurgence is gaining traction as it breaks free from a confirmed bullish pattern. The token has witnessed a resurgence in momentum, fueled by the strategic moves of whale investors.
With large holders amassing more BTC, Bitcoin is approaching crucial resistance levels, signaling a positive outlook for the digital currency.
Bitcoin Investors Feeling the Heat
Whale investors have taken the lead in accumulating Bitcoin amidst recent market fluctuations and a moderate pullback. Unlike smaller retail traders who are offloading their holdings, major investors are capitalizing on the price fluctuations to grow their portfolios. This shift highlights a growing contrast between experienced investors and novices entering the market.
Recent data from February shows a significant change in wallet distribution. The number of wallets holding 100+ BTC has increased by 135, while smaller wallets with less than 100 BTC have decreased by 138,680. This shift signifies that whale investors are reinforcing their positions while smaller traders exit the market.
Analyzing Bitcoin's overall momentum, the Cost Basis Distribution suggests a strong support range between $97,500 and $99,999. Recent data indicates that almost 200,000 BTC were accumulated within this range last month, bolstering the stability of prices.
Furthermore, investors with a cost basis exceeding $99,000 have acquired over 150,000 BTC. This accumulation further solidifies the critical range between $97,500 and $99,999, laying a solid foundation for Bitcoin's upward trajectory.
Bitcoin Eyes Recovery Path
Bitcoin is set to confirm an ascending wedge pattern upon reaching $106,100, necessitating a 7% surge. To achieve this milestone, investors must hold onto their positions and sustain the upward momentum.
Based on the accumulating trends and whale activities, Bitcoin could potentially retest the $100,000 resistance level. A successful breach at this point could pave the way for a sustained uptrend, breaking out of the ascending wedge and propelling towards $106,100 and beyond.
However, if Bitcoin fails to surpass $100,000, a downward trend could follow, potentially pushing the digital currency down to $95,668 or lower. This outcome would invalidate the bullish outlook, leading to extended market losses and a disruption in the ongoing recovery trend.