Following a lackluster performance in recent weeks, Bitcoin appears to be experiencing a steady recovery, with its price now approaching the $100,000 mark. As of now, BTC has managed to regain some of the losses it shed in recent weeks, currently hovering above $98,000, marking a 2.6% increase in the past seven days. Accompanying this price movement are new data points that highlight significant activity among large holders on exchanges, indicating a potential shift in market dynamics.
Bitfinex Whales Show Increased Activity
A CryptoQuant analyst, known as Mignolet, recently shared a detailed outlook on exchange whales and their influence on Bitcoin’s current price action. Mignolet’s observations focus on leverage ratios across major trading platforms. According to his analysis, the “all exchange leverage ratio” is at an all-time high.
This measure, which captures the amount of leverage being employed on exchanges, reflects heightened activity that could precede significant price movements. Interestingly, while Binance has seen its leverage ratio drop back to levels last seen during last year’s consolidation phase, Bitfinex is exhibiting a different trend.
On Bitfinex, leverage ratios have surged sharply, in alignment with a rise in open interest. Mignolet highlights that this activity points to a noticeable increase in whale movements within the ongoing consolidation range. While these leverage ratios alone do not guarantee a specific price direction, the sharp uptick on Bitfinex suggests a shift in market dynamics that warrants close monitoring.
The question then arises: What are these whales aiming for? Mignolet’s analysis does not provide a definitive answer, but it raises the possibility of a major price shift soon. With Bitcoin’s price maintaining stability above $98,000, the actions of these major traders could significantly influence whether the market continues to ascend or retreats back into a more prolonged consolidation phase.
Bitcoin Encounters Potential Strong Support Zone
In the meantime, Bitcoin is inching closer to the six-digit price mark, which it recently fell below. Although the digital asset is still approximately 8.7% away from its all-time high (ATH) of over $109,000, set in January, it has begun to see a positive price uptick in recent days.
At the time of writing, Bitcoin trades at $98,091, reflecting a 1.2% increase in price over the past day. Data from IntoTheBlock indicates that the asset is forming a “massive demand zone” just below the current price. Should the market face further downward pressure around this area, the zone may act as a strong support mechanism.
A massive demand zone has formed just below the current price 👇
On-chain data indicates that 2.76 million addresses acquired a total of 2.1 million $BTC at an average price of 97.1k, highlighting significant buying interest at this level.
If the market faces further downward… pic.twitter.com/ANm1kkXMtE
— IntoTheBlock (@intotheblock) February 21, 2025
In conclusion, while Bitcoin is poised for a potential rebound to the $100,000 mark, the activity of whales on platforms such as Bitfinex, along with the presence of a solid support zone, suggests that we may soon witness significant market movements. The coming days will be crucial in determining whether BTC can maintain its bullish trajectory or whether it will be forced to retreat towards consolidation.
Featured image created with DALL-E, Chart from TradingView.
