Bitcoin continues to hold steady above $85,000 as a significant shift in whale behavior signals potential accumulation phase. Recent on-chain data reveals major Bitcoin holders have stopped their months-long distribution pattern, suggesting renewed confidence in the market’s trajectory. As short-term holders face mounting pressure near the $90K resistance, whale activity could provide crucial support for the next leg up.
Whale Distribution Pattern Ends: 290K BTC Selling Pressure Subsides
According to CryptoQuant data, Bitcoin whales have concluded a significant distribution phase that saw approximately 290,000 BTC moved over five months. This substantial supply reduction from major holders appears to be shifting, with recent metrics indicating a return to accumulation patterns.
Top analyst Axel Adler’s research shows wallet balances exceeding 1,000 BTC are now showing signs of growth, marking a potential turning point in market dynamics. This behavioral change among large holders could provide the foundation needed for Bitcoin to challenge the critical $88,000-$91,000 resistance zone.
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Technical Analysis: $85,500 Support Holds Key
Bitcoin’s price action remains supported by the convergence of the 200-day moving average and 200-day EMA near $85,500. This critical support level has proven resilient, though broader market uncertainties continue to influence trading sentiment.
Market Outlook and Key Levels to Watch
For Bitcoin to establish a clear bullish trajectory, breaking above $90,000 remains crucial. The current range between $85,000 and $88,000 represents a consolidation phase, with whales’ shifting behavior potentially providing the catalyst needed for the next major move.
Risk Factors and Support Levels
- Primary Support: $85,500 (200-day MA convergence)
- Critical Resistance: $88,000-$91,000 zone
- Risk Level: $81,000 (breakdown target)
FAQ Section
What does the 290K BTC reduction in whale holdings mean?
This significant reduction represents a distribution phase that has now ended, potentially signaling the start of a new accumulation cycle.
Why is the $90K level so important for Bitcoin?
The $90,000 level represents a major psychological barrier and liquidity zone that could trigger significant price action once breached.
What could trigger a bearish scenario?
Failure to break above $90K combined with a loss of the $85,500 support could lead to increased selling pressure and a potential drop toward $81,000.