Bitcoin Price Retests Key Support Level Above $95.5K Amid Whale Activity
Bitcoin price opened the last week of February with a bearish outlook after four weeks of losing bullish momentum. The market cap is approximately $1.9 trillion, with a 24-hour trading volume around $23.3 billion. A strong support level has formed above $95.5K.
Gold trades near its all-time high of $2,945 per ounce, indicating a potential market shift for Bitcoin. An inverted head and shoulders pattern is developing, along with a rising divergence in the Relative Strength Index (RSI). Analyst Michaël van de Poppe suggests BTC may rebound towards its all-time high within two weeks.
The recovery will be invalidated if Bitcoin closes below $95.5K, risking a retest of the $92K mark.
Bitcoin Whales Remain Skeptical
On-chain data shows mixed reactions from whale investors. US spot BTC ETF issuers noted cash inflows for two consecutive weeks, recovering from previous outflows totaling over $1 billion.
Whales have accumulated more BTCs in the past year than any other year. Recently, 10,901 BTC were withdrawn from centralized exchanges, leaving around 2.22 million BTC in supply.
BREAKING: Whales are buying #Bitcoin in quantities never seen before. Something big is incoming.
— Carl ₿ MENGER ⚡️🇸🇻 (@CarlBMenger) February 24, 2025
Bigger Picture
This past year marked a price discovery phase for Bitcoin, driven by favorable fundamentals. Increasing interest from nation-states, particularly the US, has strengthened the network.
160 entities, including companies like Strategy (NASDAQ: MSTR), have accumulated over 3.1 million BTC recently. Institutional involvement in Bitcoin mining has increased the hashrate to 721.5 Ehash/s, up from 1 Ehash/s in February 2016.
The decline in available Bitcoins on CEXes and OTC platforms, combined with rising buying pressure, may trigger a significant bull rally, potentially surpassing gold’s market cap.