Bitcoin (BTC) continues to consolidate below $106,000 following its recent all-time high of $111,000, with analysts identifying crucial support levels that could determine the next major move. The leading cryptocurrency is currently trading at $105,381, showing a modest 1.2% daily gain while remaining 5.8% below its peak.
This price action coincides with significant whale accumulation activity, suggesting strong institutional interest despite the recent pullback.
Key Support Level Could Trigger New Rally
According to CryptoQuant analyst abramchart, the $96,700 level represents a critical support zone, aligning with the average entry price for short-term holders. This technical level could serve as a springboard for renewed buying interest if the market experiences further consolidation.
Institutional Accumulation Signals Strength
In a significant development, Bitfinex’s Bitcoin reserves have seen notable outflows, with approximately 24,000 BTC transferred to institutional wallets. This includes a confirmed transfer to 21 Capital (XXI), a Tether-backed entity, demonstrating continued institutional confidence in Bitcoin’s long-term prospects.
Market Outlook and Trading Implications
The current market structure suggests a period of consolidation rather than a bearish reversal. The Crypto Fear & Greed Index remains in neutral territory, indicating that the market has yet to enter the euphoric phase typically associated with cycle tops.
FAQ Section
Q: What is the key support level to watch for Bitcoin?
A: The critical support level is at $96,700, which corresponds to the average entry price for short-term holders.
Q: Is institutional interest in Bitcoin still strong?
A: Yes, recent data shows significant institutional accumulation, with 24,000 BTC being moved to institutional wallets, including 21 Capital.
Q: What’s the current market sentiment?
A: The market remains neutral according to the Fear & Greed Index, suggesting room for further upside before reaching extreme euphoria.