Bitcoin has recovered 6.25% from a local low of 90,742 USD to above 96,000 USD on November 29 as on-chain data showed whales had 'taken advantage' of the discounted price this week.
BITCOIN WHALES PURCHASE AN ADDITIONAL 1.5 BILLION USD AS BTC PRICE DROPS
Data from TradingView shows that the recovering Bitcoin price is forming after the recent correction while holding above 95,000 USD.
Market participants have observed the intentional behavior of whales, with analysis showing they play a crucial role in the recent BTC price recovery.
CryptoQuant analyst Caueconomy wrote that 'Bitcoin whales have taken advantage' of the cryptocurrency market correction earlier this week, accumulating 16,000 BTC.
In a post on November 29 on X, Caueconomy stated that most of the 1.5 billion USD in Bitcoin was accumulated after nearly 4 billion USD of BTC was sent to exchanges at a loss by short-term holders.
However, the analyst noted that 'this spot buying volume is still not enough to confirm a widespread buying pattern as prices drop, still mainly concentrated among institutions.'
In other words, other investors, such as day traders and retail investors, also need to participate to push the price above 100,000 USD.
WILL THE ACCUMULATION OF WHALES PUSH BTC TO 100,000 USD?
In October, similar activity occurred when the amount of Bitcoin held by whales reached an all-time high of 670,000 BTC. This happened before Bitcoin surged from 60,000 USD to the current all-time high near 100,000 USD.
If history repeats itself, the price of Bitcoin will benefit from whale accumulation to push the price past the psychological barrier of 100,000 USD.
According to data from IntoTheBlock, at the price of 95,634 USD, BTC is sitting above strong support on the downside compared to the resistance it faces on the recovery path.
The in/out of the money around price (IOMAP) chart below shows immediate support within the price range of 92,777 to 95,634 USD, where approximately 490,570 wallets have purchased about 441,250 BTC.
Technically, Bitcoin has immediately recovered above the 95,000 USD level after forming a V-shaped pattern from the local low of 90,742 USD.
The most likely scenario for BTC is to retest the resistance level of 100,000 USD. But first, a daily candle needs to close above the upper resistance level of 96,400 USD.