The primary cryptocurrency rallied strongly earlier this week, briefly exceeding $87,000 for the first time since January. However, bulls couldn’t sustain the momentum, and BTC retraced to the current $83,800 (per CoinGecko).
While some might fear the bears are about to regain full control, three key factors suggest the asset remains positioned for further upside.
Whales and More
BTC lost over $3,000 in value over the past 24 hours, yet institutional interest remains quite solid. Data shows that spot Bitcoin ETFs have posted five green days in a row, attracting more than $2.5 billion during that period. September 21 was the strongest day, when the financial vehicles accumulated almost $1 billion.
This development suggests pension funds, hedge funds, and other conservative investors have increased their exposure to the asset, setting the stage for further gains.
Next on the list is the declining amount of BTC sitting on cryptocurrency exchanges. According to CryptoQuant, the figure has dropped to a four-month low of around 2.7 million, indicating that many investors have shifted from centralized platforms to self-custody solutions. This is considered a bullish sign since it reduces immediate selling pressure.
Last but not least, we shall mention the whale activity. The analytics platform Santiment revealed that large investors (holding between 100 and 1,000 BTC) have purchased almost 114,000 units since mid-July. Their collective holdings have grown by 2.22% to roughly 5.24 million BTC, representing 26% of the asset’s circulating supply.
This aggressive accumulation matters because it leaves fewer coins available on the open market, which, combined with steady or rising demand, should trigger a price pump. It also signals strong confidence among these market participants and may encourage smaller players to follow suit, bringing fresh capital into the ecosystem.
The Bull Market Has Begun?
Earlier this week, renowned analyst Ali Martinez outlined several factors, such as rising activity on the BTC network and growing appetite for spot Bitcoin ETFs, suggesting the asset’s price may continue its uptrend all the way to $100,000.
Shortly after, he spotted a double-bottom formation on the price chart, which signals that the $82,500 neckline is likely to hold as support, meaning that the $100K target remains in the cards.
CryptoQuant’s analysts have also weighed in. They noted that BTC recently closed above its 365-day moving average (around $80,500) for the first time since March 2023. According to them, the development confirms the start of a new bull run, reminding that similar breaks in 2019 and 2023 have been precursors to major rallies.
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