The Acceleration of Large Transactions : Are Whales Accumulating ?
The activity of whales and institutions on the Bitcoin network has seen significant growth recently. Transactions of large value, exceeding $10 million, have surged by 183.45%. Those ranging between $1 and $10 million have also increased by 82.26%.
This remarkable surge in volumes traded by major market players reflects a renewed appetite for Bitcoin, fueling the current bullish momentum.
Meanwhile, Bitcoin outflows from exchange platforms remain substantial. Outflows amounting to $603.07 million outweigh the $435.99 million inflows, resulting in a net balance of approximately $167 million.
This phenomenon of draining liquidity from crypto exchanges is generally associated with accumulation trends, thus reducing immediate selling pressure on the market.
Between Positive Signals and Alarm Bells for Bitcoin
Despite these encouraging accumulation signs, on-chain valuation indicators emit more mixed signals.
On one hand, the MVRV Difference, which measures short-term holder profits, has dropped to 1.73%, indicating that few short-term investors have substantial unrealized gains – a generally favorable condition that limits the risks of massive profit taking.
However, the NVT (Network Value to Transactions) ratio has surged to 598.28, indicating that the network value is growing much faster than transaction volume. This raises questions about a possible overvaluation of Bitcoin relative to its actual usage.
Crucial Liquidation Zones
Analysis of the liquidation map on Binance reveals the emergence of critical zones below the current Bitcoin price.
Between $90,000 and $93,000, a dense cluster of leveraged long positions is vulnerable to liquidation in case of price retracement. Conversely, above $95,000, massive liquidations of short positions begin to accumulate, especially around $97,000 and beyond.
Therefore, if Bitcoin manages to maintain its strength and push higher, it could trigger a short squeeze, thereby accelerating the bullish momentum. However, a drop below $93,000 could risk triggering a cascade of long liquidations.
Bitcoin’s bullish momentum is supported by strong whale accumulation, favorable supply dynamics, and sustained exchange outflows. However, network activity signals and a fragile liquidation landscape suggest that caution is still warranted.
If Bitcoin manages to defend the $94,000-$95,000 zone and avoid significant long liquidations, the path could then be open for an explosive surge beyond $97,000.
