Bitcoin (BTC) Demand Revealed: Whales Accumulation Patterns Highlight Key Support and Resistance Levels

Bitcoin has recently experienced a pullback from its all-time high (ATH), leaving investors questioning where the relevant support levels lie.

Bitcoin experienced a modest but significant 4% price increase since yesterday, highlighting strong demand at the $92,000 level. This price movement follows a recent pullback from Bitcoin’s all-time high, leaving investors to identify the next key support zones.

According to on-chain metrics shared by CryptoQuant analyst Axel Adler, new Bitcoin whales have an average purchase price of $81.2K, while older whales have an average purchase price of $30.1K. These large investors’ positions offer insight into Bitcoin’s price action, indicating demand at specific price ranges.

Currently, Bitcoin’s first support level is identified at $90K, a price point that has been holding firm. The second support level is at $80K, which represents a more substantial zone for potential demand if the price continues to decline.

If Bitcoin can maintain the $90K level in the coming weeks, it will likely pave the way for a massive rally. Holding above this support would not only confirm the strength of the bullish trend but could also signal an upward push for the entire crypto market.

However, for bulls to gain confirmation and start a new leg of growth, breaking above $100K is the key threshold. A sustained move past this level would solidify confidence in the market and potentially set the stage for Bitcoin to continue its upward trajectory, attracting both retail and institutional investors.

Bitcoin Demand Revealed

As Bitcoin pulled back from its all-time high, where are the next support levels? After hitting new peaks and experiencing a correction, discussions emerge regarding the next strong levels of demand and how the market will respond to these shifts.

To shed light on this aspect, CryptoQuant analyst Axel Adler shared valuable on-chain data. His analysis reveals that the average purchase price for new Bitcoin whales is $81.2K, and for older whales, it stands at $30.1K. These data points offer insight into the accumulation patterns of large investors, highlighting their positions as critical indicators for Bitcoin’s price action.

Currently, Bitcoin’s first support level is at $90K, a price point that has been holding strong. The second support level is at $80K, which represents a more significant zone for potential demand if the price continues to decline.

If Bitcoin can maintain the $90K level in the coming weeks, it will likely pave the way for a massive rally. Holding above this support would not only confirm the strength of the bullish trend but could also signal an upward push for the entire crypto market.

However, for bulls to gain confirmation and start a new leg of growth, breaking above $100K is the key threshold. A sustained move past this level would solidify confidence in the market and potentially set the stage for Bitcoin to continue its upward trajectory, attracting both retail and institutional investors.

BTC Testing Supply

Bitcoin has shown resilience, holding strong at the $92K mark and now testing supply levels in the $96K-$97K range. This move suggests that BTC is positioning itself for a potential push toward the $100K mark, but it must first reclaim these crucial levels. The price action is seeking confirmation of bullish momentum, with the $100K level acting as a key psychological barrier.

However, if Bitcoin fails to break and hold above these levels, it could trigger a period of sideways consolidation below $100K. Such a failed attempt might result in a return to a more fearful environment in the market, where bearish sentiment could take over. This could lead to further uncertainty, keeping Bitcoin trapped in a tight range as traders await clearer direction.

In either scenario, the $100K level is the key price to watch. Whether Bitcoin can push past this level or faces rejection will likely determine the market’s next move. A successful break above $100K would signal a continuation of the bullish trend, while failure to reclaim it may result in more consolidation or a correction. Investors and traders alike will be closely monitoring this level for insights into Bitcoin’s near-term direction.

Featured image from Dall-E, chart from TradingView