Bitcoin‘s value climbed 2.5% over the past day, hitting approximately $115,700. Despite this uptick, it remains about 7% shy of its historical high. Meanwhile, Ethereum and other digital currencies have surpassed previous records. Current metrics and technical indicators indicate Bitcoin may be set for another rally, reminiscent of past upswings.
How Is Whale Selling Pressure Changing?
Recently, prominent investors, often termed ‘whales,’ have shifted their funds towards alternative assets. This shift has catalyzed individual investor activity in the market. The Whale Ratio, which evaluates the top 10 transfers to exchanges versus all transfers, serves as a key indicator of diminishing whale influence. This ratio has fallen from 0.54 on August 19 to 0.43 by August 22, the lowest in two weeks. Previously, such a dip led to substantial Bitcoin price gains, climbing from $119,305 to $124,000.
CryptoQuant CEO Ki Young Ju stated, “Whale selling pressure has been weakening for a while, which bears positive signals for price action.”
If Bitcoin follows historical trends, further enhancements above its current price are foreseeable.
What Are HODL Waves Signaling?
Following the reduction in whale activity, focus has shifted to Bitcoin’s medium and long-term holders. The HODL Waves tool monitors investment durations, revealing increased holdings in specific age sectors. Over the last month, those holding Bitcoin for 1-2 years saw their share grow from 10.31% to 10.57%, and those holding for 3-6 months from 6.40% to 7.19%. The 1-3 month holding demographic also grew from 6.99% to 8.93%. This accumulation trend reflects ongoing bullish market expectations.
A Glassnode Analyst commented, “The accumulation of long-term holders is accelerating. This could indicate increased market confidence.”
What Are Key Price Levels for Bitcoin?
Technical indicators support the current market environment, showing robust support at $115,400 and significant resistance at $117,600. The $119,700 level could be crucial for initiating a fresh price hike. Alternatively, any dip approaching $114,100, particularly below $111,900, might fuel a short-term bearish trend.
TradingView technical analyst noted, “A break above $119,700 could push the price to new records; however, potential declines should keep support levels in focus.”
Key points to consider include:
- The Whale Ratio decrease suggests less whale selling pressure, potentially aiding price rises.
- HODL Waves data shows increased Bitcoin accumulation among long-term holders.
- Critical support at $115,400 and resistance near $117,600 could direct future price movements.
Bitcoin could soon test new all-time highs as current price manoeuvres are perceived as a slight delay rather than a cessation in upward momentum. This adjustment period may lead to further gains in the cryptocurrency’s valuation.
