Whale and Miner Data Reveals Bitcoin Recovery Signals
Strong accumulation activity from whales and “capitulation” signals from miners are laying the groundwork for a potential Bitcoin recovery, with a key psychological support zone at $100,000.
New data from on-chain analytics platform CryptoQuant shows that the total amount of Bitcoin held by large wallet addresses commonly referred to as “whales” has reached 3.57 million BTC, approaching the all-time high of 3.74 million BTC set in early 2021.
Whales Are Buying Strongly
The continued accumulation of whales is a positive sign for the market, indicating that long-term investment demand remains strong. Their large-scale accumulation reduces the circulating supply on the market, thereby creating upward pressure on prices.
“This metric excludes exchange addresses and mining pools, reflecting actual accumulation from large investors. A steady increase in whale holdings is often a sign of institutional confidence and a key driver of long-term bull cycles,” said CryptoQuant analyst JA Maartunn.
Hash Ribbons Signal: Miner Stress Could Also Be an Opportunity
While whales are pouring in, the Hash Ribbons indicator that tracks miner activity has just flashed a buy signal, indicating a possible “miner capitulation.” This is a phenomenon where miners are no longer profitable enough to sustain their operations and are forced to sell BTC.
However, historically, these short-term periods of stress have often been the precursor to sustained price rallies. As weak players exit the market, supply is squeezed and fuels a bullish trend.
Short-Term Volatility Doesn’t Shake Long-Term Trend
Last week, Bitcoin saw notable volatility as it dropped below $101,000 amid the heated political debate between Elon Musk and Donald Trump, resulting in nearly $1 billion in liquidations. However, a swift recovery has taken the price back above $105,000, demonstrating strong buying interest.
Technical analysis also supports the bullish trend. A “cup and handle” pattern is forming on the daily chart, suggesting a breakout could occur if BTC breaks above the $108,000 resistance level.
Derivatives Data and Market Sentiment Reinforce the Upside
Activity from large institutions is also supporting this recovery trend. Open Interest in the Bitcoin Futures market has increased by $2 billion, while funding rates remain low, suggesting that the market is not overheated, opening up the possibility of a short squeeze.
Key Support and Resistance Zones: Can BTC Hold $100,000?
Currently, on-chain factors identify a strong support zone for BTC in the $100,000-$102,000 range. This is considered an important psychological level that can hold even during minor corrections.
Meanwhile, resistance lies at $108,000-$110,000, where a breakout could pave the way for a move to $120,000 in the short term.
Market Triggers to Watch
Investors should keep a close eye on potential movers, such as:
Sell-offs from miners.
Macroeconomic news, especially Fed policy.
Global trade and geopolitical volatility.
Bottom line: The confluence of on-chain signals from whales and miners, along with technicals and derivatives, is reinforcing expectations for a sustained Bitcoin rally. As long as the $100,000 mark is held, the market could be primed for a new rally.