The Bitcoin market is currently experiencing a significant increase in momentum, as the cryptocurrency has recently surpassed the $110,000 threshold, approaching its all-time high. The asset recorded a 24-hour peak of $110,117, just under 3% away from its previous high of $111,814 set in May. At the time of this report, Bitcoin is trading around $109,000, reflecting a 1.3% rise over the last day. While this price movement has sparked speculation about a potential breakout, analysts believe that deeper structural changes within the market are influencing these developments.
On-chain data indicates shifts in whale activity, exchange flows, and stablecoin trends, which may provide insights into Bitcoin's future trajectory. CryptoQuant analyst Crypto Dan offered an in-depth analysis of Bitcoin's current price pattern, highlighting a significant directional shift that began in April. He attributes Bitcoin's recent price stability to a marked decrease in selling pressure from institutional investors and large holders based in the United States. These major players, who had previously been liquidating substantial amounts of Bitcoin, have recently transitioned to accumulation.
According to Dan, Bitcoin is currently undergoing a transitional period. He has observed a steady decline in sell-side activity among major US wallets since April, which has coincided with consistent buying pressure. This trend suggests that institutions are not offloading their positions but are either maintaining or increasing their holdings. Dan further noted that the present consolidation phase, with Bitcoin's price stabilizing above the $100,000 level, is allowing short-term overbought indicators to ease. While he acknowledged the potential for a price correction, he remains optimistic about the overall upward trajectory of the market, particularly looking ahead to the latter half of 2025. This ongoing price activity may be indicative of a calm period before a more substantial upward movement, provided that macroeconomic conditions remain favorable.
In addition, another contributor from CryptoQuant, Novaque Research, highlighted recent changes in on-chain flows and liquidity conditions. Their analysis shows a notable increase in exchange outflows since late June, with certain days witnessing withdrawals exceeding 10,000 BTC. This behavior typically reflects long-term investor confidence and suggests a reduced likelihood of immediate sell pressure. Furthermore, miners have largely refrained from selling, even with BTC prices over $100,000, indicating a belief in price stability and an expectation of more favorable market conditions.
Additionally, shifts in stablecoin activity have been observed, with the supply ratios of USDC and USDT on exchanges declining since mid-June. This trend suggests that capital is currently inactive rather than being funneled into spot markets. Novaque pointed out that while investors may be waiting for clearer signals, the underlying market dynamics appear to favor accumulation.
