Bitcoin Whales Control 94.5% Of Exchange Volume – Selling Patterns Suggest Shift Ahead

Bitcoin has experienced a significant surge, climbing from local lows of $92,000 to a local top of $98,950 yesterday. This upward 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 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 the total trading volume, overshadowing smaller transactions. This data suggests that whales and institutional investors are playing a dominant role in shaping Bitcoin’s price movements. Their 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 eagerly awaits confirmation of a continued bullish trend. The interplay between large transactions and retail participation will determine the cryptocurrency’s direction in the coming weeks. Whether this rally is the start of a new leg up or a temporary spike remains to be seen, 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 critical role in the cryptocurrency market, consistently dominating over 90% of transaction volumes since its early stages. Their influence is a hallmark of the market’s dynamics, often dictating price trends and shaping investor sentiment. However, this dominance is not static and fluctuates with market cycles, offering insight into broader trends.

Top analyst Axel Adler recently shared data on X, shedding light on the current state of whale activity. According to Adler, the top 10 large transactions on exchanges now account for an impressive 94.5% of the total market volume, eclipsing smaller transactions. This figure is particularly noteworthy as it exceeds the 10-year average of 93.5%, underscoring the increasing concentration of market power among large players.

Adler highlights a historical trend in whale behavior: around the mid-cycle, whales typically sell their holdings, gradually reducing their market dominance as the cycle peaks. This pattern was prominently observed during Bitcoin’s movement between $35,000 and $70,000, where whale dominance began to wane. The current elevated dominance of large transactions suggests that whales remain highly active, which could signal the early to mid-stages of a bullish cycle.

Understanding this dynamic is crucial for investors. While whale dominance highlights confidence among major players, it also emphasizes the importance of monitoring their behavior for signs of market shifts. As Bitcoin navigates its next move, tracking these metrics will be vital for assessing the potential trajectory of the market.

BTC Trying To Push Above $100K  

Bitcoin is currently trading around $98,000, following its first attempt to breach the highly anticipated $100,000 mark. This level represents a significant psychological and technical barrier, and breaking above it could pave the way for a new wave of bullish momentum. However, for this to happen, bulls must not only push the price above $100K but also establish it as a strong support level to confirm the breakout.

The $95,000 mark has proven to be a robust support level, offering a foundation for Bitcoin’s current position. Holding above this level is a positive sign, as it keeps the bullish structure intact and gradually weakens the resistance at the $100K supply zone. This sets the stage for another attempt to reclaim new highs.

Market participants are closely watching the $100K level, as a successful breach could trigger an aggressive rally, driving BTC into uncharted territory. On the other hand, failing to break above this level in the near term could lead to prolonged consolidation or even a retracement to retest lower support levels. As sentiment remains cautiously optimistic, the next few days will be pivotal in determining Bitcoin’s short-term direction and the broader market’s momentum.

Featured image from Dall-E, chart from TradingView