In the past 24 hours, significant Bitcoin holders, known as whales, have added over 10,000 BTC to their wallets. This transaction was highlighted by on-chain insights from analyst Ali Martinez.

As this buying activity emerges, it coincides with a period of consistent selling, emphasizing its importance as Bitcoin approaches critical support levels.

Accumulation Amidst Price Decline

Wallets that hold between 1,000 to 10,000 BTC have resumed their accumulation after a month of flat activity.

“Over 10,000 Bitcoin $BTC bought by whales in the last 24 hours!”
— Ali (@ali_charts)
Translation: Over 10,000 Bitcoin $BTC purchased by large holders in the past day!

During the same timeframe, Bitcoin’s value has seen a near 7% decrease, currently trading below $102,000, with trading volumes hitting approximately $70 billion over the last 24 hours.

Additionally, metrics from CryptoQuant reveal that the Exchange Whale Ratio has dropped to about 0.40 to 0.45, the lowest in a month, suggesting that whales are possibly holding onto their assets rather than preparing to sell their holdings.

Source: CryptoQuant

Another indicator, the Profit and Loss Margin for short-term holders, has dipped to -11.16%. Historically, when it falls below -12%, Bitcoin often reverses its trend. As the current figure hovers close to this mark, many market observers are keenly watching for a potential bounce back.

Price at Significant Support Levels

Bitcoin has reached the 50-week exponential moving average, a level that has often provided support during price corrections. Analyst Rekt Capital noted that the RSI is approaching 44.5, a region where past recoveries have initiated. Consistent high lows in both price and RSI could signal a reversal.

Nevertheless, opinions vary. Crypto Patel warned, “BTC breakdown confirmed, structure flipped bearish,” indicating a potential drop to $83,610, while stating that a rise above $116,400 would negate this bearish perspective.

Most critically, Bitcoin is now testing the 50-week simple moving average. Previous breaches of this line have led to significant corrections, raising the likelihood of further declines if the price fails to remain above this line.

Global Factors Impacting BTC

Daan Crypto Trades attributes the ongoing weakness in Bitcoin to diminishing global liquidity, asserting,

“Once global liquidity starts expanding again at a rapid pace, the environment for crypto will be much more supportive.”
Translation: Once worldwide liquidity increases rapidly, the conditions for cryptocurrencies will become significantly more favorable.

Moreover, trends from various regions show increased selling pressure, particularly from the U.S., Asia, and Europe. Ted remarked,

“There’s no chance of recovery until spot bid happens.”
Translation: Recovery seems unlikely until spot buying resumes.

Overall, Bitcoin’s market structure has weakened, trading below several long-term trend lines, as multiple weekly closes confirm ongoing price stress.