Bitcoin Tests Critical Resistance Zone as Whale Accumulation Intensifies
Bitcoin is at a crucial juncture as it approaches a significant resistance zone near $65,000. On-chain data suggests that large investors are accumulating Bitcoin while retail traders reduce their exposure to the asset.
The descending trendline near $64,700 to $65,000 has already rejected Bitcoin twice this year, and a third rejection could solidify the existing pattern of lower highs and keep the broader downtrend intact. However, if Bitcoin manages to break above this resistance zone, it would represent a significant technical signal that sellers are losing control.
A recent analysis by Santiment highlights a divergence in ownership among Bitcoin wallets. Those holding between 10 and 10,000 BTC have increased their balances by 0.34% since July 29, while those holding less than 0.01 BTC have reduced their holdings by 0.59%. This pattern of accumulation among institutional investors and large holders as retail participants capitulate increases the probability of Bitcoin breaking above $70,000 rather than falling below $60,000.
Additionally, U.S. spot Bitcoin ETFs have attracted approximately $755 million in net inflows so far this month, lifting total assets under management to nearly $79 billion. This continued demand for Bitcoin has provided a steady source of buying pressure throughout the current consolidation phase and reinforces the longer-term bullish outlook.