Key Points
- Bitcoin price rebounds to retest resistance range between $98.4K and $98.8K, with a resurgence of bullish sentiment.
- Increased Bitcoin transactions signal renewed activity from whale investors, yet larger entities are not accumulating more coins.
Bitcoin’s price has seen an over 3% rebound in the past two days, retesting a critical resistance range between $98.4K and $98.8K.
On February 22, the leading cryptocurrency was trading around $98.2K as the fear of further crypto capitulation began to ease.
In the last two days, Bitcoin’s fear and greed index has increased from 49% to around 55%.
Bitcoin’s Price and Market Sentiment
The Relative Strength Index (RSI) on the daily timeframe has risen above 50%, indicating a resurgence of bullish sentiment.
However, Bitcoin’s price is not yet fully stable.
Since the second inauguration of US President Donald Trump in mid-January, the BTC price has been in a correction phase.
From a technical analysis perspective, BTC price has been consolidating in a horizontal channel with the upper and lower borders of around $108K and $91K respectively.
There could be a potential reversal pattern forming, characterized by a double top and a bearish divergence of the daily RSI.
To invalidate the short-term bearish sentiment, BTC price must consistently close above the resistance/support level of around $99.5k.
If not, Bitcoin price has a higher momentum of retesting the support level around $91K before rebounding towards a new all-time high (ATH).
Renewed Whale Activities in the Bitcoin Network
As global liquidity gradually increases, the overall demand for Bitcoin will continue to rise exponentially.
Bitcoin has been identified as digital gold, despite gold’s price action outrunning the leading cryptocurrency in the past few weeks.
According to on-chain data analysis from IntoTheBlock, 73% of Bitcoin holders have not sold for more than a year amid the ongoing mainstream adoption of digital assets.
In the last week, the number of transactions greater than $100K has increased from 6.5K on Monday to about 10K on Friday, signaling the resurgence of whale investors.
Aggregate data analysis by CoinGlass shows that the overall supply of Bitcoin on centralized exchanges (CEXes) dropped by about 2,971 coins to around 2.23 million.
However, larger entities, including US spot BTC ETFs like BlackRock’s IBIT, and Fidelity’s FBTC, have not been accumulating more coins in the last few days.
On Thursday, the U.S. spot Bitcoin ETFs recorded a net cash outflow of about $364 million.
Data analysis from Glassnode suggests that large entities are either distributing or not accumulating, indicating that large whale investors might be considering altcoins like Ethereum, XRP, and Litecoin, among others in anticipation of an altseason.
