Whales Are Buying: Is Bitcoin Ready to Rally?
BTC/USD Chart Reveals Ranging Market and Bearish Bias
Bitcoin bulls were charging forward at full force from December 31, 2024, until January 6, 2025, and it looked like the crypto king was headed towards the top at 108K. But what looked to be a new attempt to break the ATH turned into a slide below 100K and currently BTC is changing hands at $94,000.
The bulls are losing steam and it’s clear that bearish pressure is increasing. Leveraged positions are adding to this pressure: on Tuesday, January 7, Bitcoin dropped from $102,700 to $96,100, which is $6,600 in the spot market but for overly leveraged futures positions, it could spell account liquidation.
Despite the recent correction, the major players from the crypto world are optimistic about 2025 as a year when new barriers will be broken and new heights reached. Founder and former Binance CEO Changpeng Zhao (CZ), called 100K “boring” when referring to Bitcoin’s price, suggesting that it can reach a price far beyond the current one. In another X post, CZ said that “2025 will be a send it year”.
On the same note, Bitwise CEO Matt Hougan said that believes that the bullish momentum of cryptocurrencies will continue throughout 2025. He predicts that Bitcoin will lead the charge and head towards $200K, fuelled by the corporate demand for Bitcoin ETFs.
Whale activity is starting to pick up.
It’s relatively normal for Bitcoin whales (wallets with holdings between 1,000 BTC and 10,000 BTC) to accumulate coins during times of price correction. Usually, whale accumulation is followed by a price increase. Since the ATH was reached, whales bought 34K Bitcoins, according to Cauê Oliveira, head of research at Blocktrends.
This could be a sign that Bitcoin is ready to make another run above $100K, especially if it will be boosted by favourable crypto policies set in place by the new Trump administration. Some analysts predict $150K as the worst-case scenario and $400K as the best-case scenario if the USA approves a cryptocurrency reserve. We are not quite there yet but never say “never”.
Chart Analysis – BTC/USD
The latest price action created a significant lower high at $102,600, which is a sign that the uptrend may be coming to an end. However, there are mixed signals because this high surpassed the previous one (at $99,800) but it’s lower than the ATH at $108,360.
This type of price action is indicative of a ranging market, with several bounces between support and resistance. The short-term bias is bearish after BTC failed to settle above $100K and moved below the 50-day Moving Average.
This being said, it looks like the next destination is the support at $90,700, which was a previous low, and already rejected the price once in late December. Don’t forget that later today the Non-Farm Payrolls will be announced and the U.S. labor market can affect Bitcoin’s price.
