Key Points
- Bitcoin’s price has established a strong support level above $95.5K, despite bearish outlook.
- Whale investors show mixed reactions, with some accumulating more Bitcoins.
Bitcoin started the last week of February with a negative outlook, after a gradual decrease in positive momentum over the past month.
The leading cryptocurrency, with a market cap of approximately $1.9 trillion and a 24-hour average trading volume of around $23.3 billion, has managed to form a strong support level above $95.5K in the last three weeks.
Market Shift Ahead
As the price of Gold continues to climb, reaching around its all-time high of about $2,945 per ounce on Monday, the price of Bitcoin is indicating a potential market shift.
In the daily time frame, the price of Bitcoin has been forming a potential inverted head and shoulders (H&S) pattern, along with a rising divergence of the Relative Strength Index (RSI).
Historical trends suggest that the Bitcoin price is in a period of calm before a potential storm.
According to crypto analyst Michaël van de Poppe, the price of Bitcoin is likely to bounce back towards its all-time high in the next fortnight.
The short-term recovery of Bitcoin will be invalidated if the price of Bitcoin consistently closes below the established support level of around $95.5K.
If this happens, the Bitcoin price is likely to retest the lower border of a horizontal consolidation channel around $92K, which has been established since November 2024.
Mixed Reactions from Bitcoin Whales
On-chain data analysis shows that the Bitcoin network has experienced a mixed response from whale investors over the past week.
For example, US spot Bitcoin ETF issuers recorded the second consecutive week of cash inflow after losing around $559M last week and approximately $585M the week before.
However, on a larger scale, whale investors have accumulated more Bitcoins in the past year than any other year.
In the past week, a total of 10,901 Bitcoins were withdrawn from centralized exchanges (CEXes), leaving the current supply at around 2.22 million units.
Bitcoin has been in a price discovery phase over the past year, driven by favorable fundamentals.
Ongoing discussions by nation-states, led by the United States, to follow in the footsteps of El Salvador have strengthened the Bitcoin network.
Moreover, 160 entities, led by publicly traded companies such as Strategy (NASDAQ: MSTR), have accumulated more than 3.1 million Bitcoins in the recent past.
Additionally, the involvement of institutional investors in the Bitcoin mining sector has increased the overall hashrate to about 721.5 Ehash/s, up from 1 Ehash/s in February 2016.
With the overall decline of Bitcoins for sale on CEXes and OTC platforms, the significant imbalance against the growing buying pressure will likely trigger a major bull rally in the coming years, possibly surpassing gold’s market cap.
