Currently, Bitcoin is trading below its all-time high of $112,000, facing increased sales pressure as the entire cryptocurrency market cools down. While some analysts believe there may be further downsides, others point to a change in the global dynamics of Bitcoin that may soon be. Rising U.S. bond yields and ongoing geopolitical tensions are reshaping risk sentiment across financial markets, potentially positioning BTC as a hedge in uncertain times.
A key signal comes from whale activity. According to new Alphractal data, whale-to-retail ratios are starting to rise again, suggesting that large investors are taking more risks while retail participants remain cautious. Historically, whales have been growing appetite because institutional participants tend to move early during uncertainty. This difference between whales and retailers may suggest that despite the current price drop, the cumulative phase appears under the ground.
The days ahead will be crucial. If Bitcoin remains above the height of critical support levels, then the presence of powerful people can support reversal or consolidation before attempting to make price discovery. Currently, whales’ convictions are on the rise – which may be key if sentiment changes bullish again.
Whale activity increases in systemic uncertainty
Even as global markets are stunning by systemic risks, rising inflation rates and worsening macroeconomic indicators, Bitcoin continues to surpass the crucial $100,000 level. Although stocks and commodities reflect growing volatility, Bitcoin seems to be entering a phase of elasticity, often seen as investors look for alternatives in times of uncertainty.
In developed economies, inflation continues and bond yields continue to rise, putting pressure on traditional markets. In this context, Bitcoin’s positioning as a hedge against money instability is attracting attention. However, sentiment across the cryptocurrency market remains dispersed, with many retailers taking a cautious stance as the volatility increases.
According to new data from letters, a significant difference is formed between whales and retail behavior. The whale’s position to retail ratio has begun to climb compared to smaller investors. This suggests that whales are once again prolonged while retail participants are still risk aversion.
Historically, spikes at this ratio have been held at major price rallies, as whales often accumulate before the wider market shifts. “The risk appetite is back, which is a potential bullish signal for current bearish sentiment,” Alphractal noted.
If macro-conditional alignment and BTC maintains critical support, quiet accumulation of large players may lay the foundation for a strong move. When the market looks for direction, whales’ confidence may be the catalyst for the catalyst.
Key support levels above Bitcoin merger
After briefly immersing into the line in recent market volatility, Bitcoin (BTC) continues to consolidate support levels slightly above the critical $103,600. The daily chart shows that BTC is currently trading at $104,341, forming a potentially higher low structure that can support recovery if demand continues.
Price action is still squeezed between the 34-day exponential moving average (EMA) at $103,256, while indirect costs at $109,300, marking the latest local top. Holding a simple moving average (SMA) for over 50 days, currently at $101,026, is crucial to retaining a broader uptrend.
The volume dropped slightly, indicating that momentum would cool down after a sharp 5% pullback earlier this week. This small batch environment can open doors for large players to accumulate before another breakthrough attempt. Now, the market is waiting to see if the Bulls can push BTC toward the resistance zone of 108,000-$109,000 to test the possible regaining all-time highs.
A failure below $103,600 would mark a weakness and could push BTC toward a 100-day SMA for nearly $92,600. Currently, Bitcoin remains strong, but any major macro development or emotional change will determine whether the current merger becomes a launch pad or reverse.
Featured images from DALL-E, charts from TradingView
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