Short term Bitcoin Whales Swim in Money
JA Maartunn, an analyst at CryptoQuant, highlighted that whales have recovered to their $90.8K break-even point
Quick overview
- Whales have reached their $90.8K break-even point, making them profitable and less likely to sell, which stabilizes the market.
- Bitcoin has consolidated around the $95K resistance level and is currently trading at approximately $97K, with potential to retest $100,000.
- The Relative Strength Index is at 70, indicating an overbought condition, which suggests a high likelihood of a pullback.
- The network hash rate has reached a record 1.04 ZH/s, reflecting optimism among long-term holders and miners about the rally's continuation.
Live BTC/USD Chart
JA Maartunn, an analyst at CryptoQuant, highlighted that whales have recovered to their $90.8K break-even point. This indicates they are now profitable and less likely to sell, stabilizing the market. A short-term whale is an address that has owned Bitcoin for less than six months.
The fact that Bitcoin is now higher than its average realized price has allowed these whales to sit in aggregate profit.
Bitcoin consolidated around its key resistance level of $95K for five days, peaking at $97,400 on Thursday before breaking above it. It trades at about $97K at publication.
Bitcoin may extend its gains to retest its psychological resistance at $100,000 if it maintains its upward momentum and closes above its daily resistance at $97,700. The daily chart shows that the Relative Strength Index is at 70, close to its overbought level.
The likelihood of a pullback is high around the overbought level at 70, so traders should exercise caution. It is also possible that the RSI will continue to rise in price and remain above the overbought levels.
These participants have historically paused or lessened selling pressure when they reach profitability.
Data from the on-chain confirms this importance. Perpetual swap funding rates are still very low, suggesting that many short positions could be squeezed if buying keeps up. Long-term holders have gradually rebuilt their accumulation.
This month, the network hash rate also broke a record at 1.04 ZH/s. These indicators show that patient investors and miners are optimistic about maintaining the rally’s trajectory.
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