Key Points
- Bitcoin (BTC) is poised for a major breakout above $100K, aiming for new all-time highs.
- Large Bitcoin wallets have accumulated an additional 81,338 BTC over the past six weeks.
Bitcoin (BTC) price has shown positive momentum, gaining 2.33% and surpassing $96,600 levels. The cryptocurrency is now looking to break the $100K barrier and set new all-time highs.
This comes ahead of the FOMC meeting and amid positive developments in the US-China trade talks.
Crucial Support Levels
Crypto exchange Bitfinex has noted that Bitcoin can only reach new all-time highs if it sustains above the crucial support levels of $95,000.
If Bitcoin maintains above the $95,000 mark, it would signal a “structural shift” back into bullish territory and open the door for new all-time highs. However, failure to do so could lead to a significant downtrend.
The upcoming days are critical in determining whether Bitcoin will experience a sustained breakout or retreat to retest lower support levels. The US-China trade war negotiations and Jerome Powell’s positive commentary at the FOMC could influence Bitcoin’s next directional move.
The US Federal Reserve has initiated its largest three-year bond purchase program since 2021, injecting $20 billion daily. Meanwhile, markets are anticipating potential interest rate cuts at the upcoming FOMC meeting on May 7.
Increasing Accumulation by BTC Whales
Bitcoin wallets holding between 10 to 10,000 BTC, which are closely tied to market health, have accumulated an additional 81,338 BTC over the past six weeks. This represents a 0.61% increase in their holdings during a period of high volatility.
Institutional interest is also evident through the strong inflows into spot Bitcoin ETFs. BlackRock’s IBIT has seen consecutive inflows over the past 16 days, nearing $5 billion.
On the other hand, smaller wallets with less than 0.1 BTC, often associated with lagging and inverse price correlations, have shed 290 BTC, marking a 0.60% reduction in their holdings.
