Bitcoin continues to show activity in the market, rising by 2.5%. However, its price remains below its historical peak. This article examines the current trends in the cryptocurrency market, including pressure from large investors, the activity of long-term holders, and key price levels.
How Is Whale Selling Pressure Changing?
Recently, influential investors, often referred to as 'whales,' have begun to shift their funds towards alternative assets. This has spurred increased individual investor activity in the market. The Whale Ratio, which assesses large transfers to exchanges against all transfers, indicates a diminishing influence of whales. This ratio fell from 0.54 on August 19 to 0.43 by August 22, marking the lowest level in two weeks. Such dips have historically preceded significant price increases for Bitcoin, which rose from $119,305 to $124,000.
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.
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.
Bitcoin could soon test new all-time highs as current price movements are perceived as a slight delay rather than a pause in upward momentum. This adjustment period may lead to further gains in the cryptocurrency's valuation.
