Is Bitcoin [BTC] going through a tense time? Exchange supply has been falling, big players are buying, and leverage is building on both sides.
The next breakout depends on which side of the trade gets forced out first.
Whales are buying again!
According to data from Alphractal, wallets holding more than 1,000 BTC absorbed around 270,000 BTC in the last 30 days. That’s equal to nearly 1.4% of total supply!
Exchange reserves have also dropped to 2.21 million BTC, or 5.88% of circulating supply. That’s the lowest in 8 years!
At the time of writing, whale vs retail delta indicated stronger whale activity, while retail stayed behind. Now, this doesn’t mean a breakout is immediate. However, it is safe to assume that larger holders may be using this calm to build positions.
Available sell-side liquidity will decrease.
BTC stuck between pressure zones
At press time, BTC seemed to be stuck in between heavy liquidation zones, building on both sides. The key upside cluster was at $86K, and the lower cluster was visible closer to $76,000.
Bitcoin has been trading within a narrow decision zone, and the next move may be caused by forced liquidations.
If the price pushes up, short positions could be squeezed. If Bitcoin goes low, leveraged longs may be out first. There’s enough leverage on both sides to speed up the next move once a cluster is hit.
A breakout on the way?
BTC‘s price closed near $79,905 on the chart, with an intraday move from around $78,205 to $80,750.
The pace also seemed to be on the up, with RSI near 65 and MACD flattening after a brief fall. The histogram also turned slightly positive again.
There could be more buying pressure, but it depends on whether Bitcoin can hold above $80,000 and break towards the upper liquidation zone.
Final Summary
- Bitcoin whales accumulated 270,000 BTC in 30 days as exchange reserves dropped too.
- While BTC has been trading between the $76K-$86K liquidation zones, rising leverage means a breakout may be possible.
