Bitcoin Sees Profit-taking but Whales Continue Buying — Where is The Top?

Bitcoin reached the price level of $90K as of press time, hinting at a new peak in market sentiment. The optimism was mirrored in the on-chain transaction volume, with every sixth transaction being the highest since the previous all-time high in March, reflecting heightened trading activity.

Bitcoin saw a mix of profit-taking and aggressive long positioning that looked to capitalize further rises. During the month of October, there were notable shifts in trading behaviors.

Binance and Bitmex exhibited the highest long rates since March’s all-time high, suggesting a strong bullish sentiment. This could be an affirmation of further potential gains despite the high selling pressure.

Interestingly, while Bitcoin was surging, the Binance funding rate surged, implying that investors continued to take long positions, betting on price increases. Even though traders were cashing in on the high prices, the data suggested they maintained a bullish outlook, anticipating that BTC could still ascend beyond current levels.

The combination of factors indicated that despite recent corrections, underlying market dynamics supported the possibility of further rises in Bitcoin’s value.

Whale and Shark Wallets Buying BTC Dips

Additionally, Bitcoin accumulation by whale and shark wallets holding over 10 BTC, totaled 234.15K BTC in the past year. As Bitcoin scraped the $90K mark, the sentiment among the crypto community shifted from fear to euphoria. The accumulation translated into an increase in the market value of these holdings, now worth $19.76 Billion.

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In mid-September, the sentiment was fearful, possibly driving the prices lower and allowing whales to purchase at lower prices. By mid-October, the sentiment neutralized as the market stabilized. Currently, the euphoria hasn’t peaked to the levels seen in mid-March during the previous all-time high.

The consistent accumulation by these large stakeholders has bolstered price, reflecting their confidence in Bitcoin’s potential for further gains. The crowd’s fluctuating sentiment, often resulting in selling during dips, has allowed whales to continue their accumulation, contributing to Bitcoin’s historic price movements.

If whales maintain their buying momentum and retail investors continue selling during dips, the upward trajectory could sustain.

Can Liquidity Determine The Top for Bitcoin?

The global money supply dipped after 2021 highs, followed by a recovery in 2024, indicating a surge in liquidity. Simultaneously, SCP blockchain activity mirrored the trend, albeit more volatile, spiking in early 2021 before declining and then picking up in 2024 alongside liquidity increases.

The synchronization suggested that liquidity greatly influenced blockchain activity and, by extension, Bitcoin’s valuation.

With central banks poised to inject an estimated $20 Trillion into global economies over the next 12-15 months, liquidity is expected to reach unprecedented levels, potentially driving Bitcoin’s price higher.

Liquidity’s pivotal role in crypto markets suggested that the top for Bitcoin could coincide with the peak in global liquidity. As the world moves increasingly on-chain, propelled by central banks, the ceiling for Bitcoin’s price remains unfixed, suggesting more room for growth as liquidity expands.