bitcoin has seen a significant rise, going from local lows of $92,000 to a local high of $98,950 yesterday. This bullish momentum has reignited optimism among investors and analysts as the leading cryptocurrency continues to show resilience after weeks of market indecision. However, the dynamics behind this rally shed light on the influence of the major market players.
Data shared by CryptoQuant analyst Axel Adler highlights an intriguing trend: the top 10 large transactions on exchanges now dominate 94.5% of total trading volume, eclipsing smaller transactions. This data suggests that whales and institutional investors are playing a dominant role in shaping bitcoin price movements. Its dominance not only underscores the concentration of market power, but also raises questions about the sustainability and trajectory of this recent surge.
As btc approaches the psychological $100,000 mark, the market is eagerly awaiting confirmation of a continued uptrend. The interplay between large transactions and retail participation will determine the direction of the cryptocurrency in the coming weeks. It remains to be seen whether this rally is the start of a new advance or a temporary spike, but the current dynamics highlight the growing influence of major players in the bitcoin ecosystem.
bitcoin dynamics may change
bitcoin whales have always played a pivotal role in the cryptocurrency market, consistently dominating over 90% of transaction volumes since their early stages. Its influence is a hallmark of market dynamics, often dictating price trends and shaping investor sentiment. However, this domain is not static and fluctuates with market cycles, offering insights into broader trends.
The best analyst Axel Adler <a target="_blank" href="https://x.com/AxelAdlerJr/status/1875138035622220091″ target=”_blank” rel=”noopener nofollow”>recently shared data aboutshedding light on the current state of whale activity. According to Adler, the 10 largest transactions on exchanges now account for an impressive 94.5% of the total market volume, dwarfing the smaller transactions. This figure is particularly notable as it exceeds the 10-year average of 93.5%, underscoring the growing concentration of market power among the large players.
Adler highlights a historical trend in whale behavior: Around mid-cycle, whales typically sell their holdings, gradually reducing their dominance in the market as the cycle peaks. This pattern was prominently observed during bitcoin's move between $35,000 and $70,000, where the whales' dominance began to weaken. The current high prevalence of large transactions suggests that whales are still very active, which could indicate the early and middle stages of a bull cycle.
Understanding this dynamic is crucial for investors. While the dominance of whales highlights trust between major players, it also emphasizes the importance of monitoring their behavior for signs of market changes. As bitcoin makes its next move, tracking these metrics will be vital to assessing the potential trajectory of the market.
btc tries to break $100,000
bitcoin is currently trading around $98,000, following its first attempt to surpass the highly anticipated $100,000 mark. This level represents a major psychological and technical barrier, and breaking it could pave the way for a new wave of bullish momentum. However, for this to happen, the bulls must not only push the price above $100,000 but also establish it as a strong support level to confirm the breakout.
The $95,000 mark has proven to be a solid support level, offering a foundation for bitcoin's current position. Staying above this level is a positive sign as it keeps the bullish structure intact and gradually weakens the resistance in the $100,000 supply zone. This sets the stage for another attempt to recapture new highs.
Market participants are closely watching the $100,000 level as a successful breach could trigger an aggressive rally, taking btc into uncharted territory. On the other hand, failure to break above this level in the short term could lead to prolonged consolidation or even a pullback to retest lower support levels. As sentiment remains cautiously optimistic, the next few days will be critical in determining bitcoin's near-term direction and overall market momentum.
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