After a disappointing performance in recent weeks, Bitcoin seems to be experiencing a steady recovery, with its price now nearing the $100,000 milestone.
So far, BTC has successfully recouped some of its recent losses, currently priced above $98,000, reflecting a 2.6% increase over the past week.
Amid this price action, new data has surfaced, indicating significant activity among large holders on exchanges, hinting at a shift in market dynamics.
Bitfinex Whales Show Increased Activity
CryptoQuant analyst Mignolet recently provided a comprehensive outlook on exchange whales and their role in the current Bitcoin price movements. His insights focus on leverage ratios across major trading platforms, noting that the “all exchange leverage ratio” is at a record high.
This metric, capturing the extent of leverage utilized on exchanges, reflects increased activity that may precede significant price movements. Notably, while Binance’s leverage ratio has returned to levels seen during last year’s consolidation phase, Bitfinex reveals a contrasting trend.
At Bitfinex, leverage ratios have sharply increased, coinciding with a rise in open interest. Mignolet notes that this behavior indicates a sudden influx of whale activity within the current consolidation range.
Though these leverage ratios do not guarantee a specific price trajectory, the sharp rise on Bitfinex suggests a noteworthy shift in market dynamics that requires close observation.
Regarding whale intentions, Mignolet raises an intriguing question: What are these large holders targeting? Although his analysis doesn’t provide a conclusive answer, it hints at the potential for a significant price movement soon.
As Bitcoin maintains its price above $98,000, the actions of these large traders could determine whether the market ascends further or retracts into another phase of consolidation.
Bitcoin Encounters Potential Strong Support Zone
Meanwhile, Bitcoin continues its approach towards the six-digit price mark, which it dipped below last week. While it remains roughly 8.7% away from its all-time high (ATH) of over $109,000 set in January, the asset has seen a recent price bounce.
Currently, Bitcoin is trading at $98,091, reflecting a 1.2% increase over the past day. According to data from IntoTheBlock, the asset seems to be forming a “massive demand zone” just below its current price.
IntoTheBlock emphasized that should the market face additional downward pressure near this region, this zone may serve as a robust support level.
A massive demand zone has formed just below the current price
On-chain data indicates that 2.76 million addresses have acquired a total of 2.1 million $BTC at an average price of 97.1k, demonstrating significant buying interest at this level.
If the market experiences further downward… pic.twitter.com/ANm1kkXMtE
Featured image created with DALL-E, Chart from TradingView
