Bitcoin experienced a notable decline recently, with prices dipping below $95,000, retreating further to levels around $94,600 and even as low as $93,395. However, buyers emerged around the $94,000 mark, staving off a further decline and enabling a rapid recovery. Following this, Bitcoin began to rise again, breaking through critical resistance levels that had previously posed significant challenges.
Key Resistance Levels Broken As Bulls Step In
Bitcoin did not remain down for long. It broke above the $94,600 threshold and surpassed a bearish trendline at approximately $94,755. This action opened doors for additional upward movement, allowing Bitcoin to breach the $96,500 mark, inching closer to the psychological $97,000 level. The situation is further supported by the 100-hour Simple Moving Average, which resides below the current price, indicating bullish momentum.
Currently, traders are keenly observing whether Bitcoin will break above the $97,000 ceiling. Such a breakthrough could position the coin towards targets of $98,800 or even the much-anticipated $100,000 mark, which has remained a focal point for traders over the past few months.
Whales Add Over 81,000 BTC In Six Weeks
Large holders, commonly referred to as whales, are gaining confidence in the market. Wallets containing between 10 and 10,000 BTC have accumulated over 81,000 BTC within the last six weeks. These wallets are generally attributed to institutions or long-term investors who tend to buy during periods of relative price stability or decline.
As May progresses, Bitcoin’s key stakeholders are mostly moving in the right direction if you’re rooting for $100K $BTC in the near future.
Wallets with the highest correlation with crypto’s overall market health (10-10K BTC wallets) have accumulated a combined 81,338 more… pic.twitter.com/4DKhOwROgx
— Santiment (@santimentfeed) May 6, 2025
In contrast, smaller holders owning less than 0.1 BTC have sold off a total of 290 BTC during the same timeframe. The divergence in behavior between large and small holders is noteworthy; such trends have often preceded significant price surges in the past.
$734M In Shorts Wiped Out
Short sellers, anticipating a decline in prices, found themselves caught off guard when Bitcoin surpassed the $95,600 resistance level. According to Coinglass analytics, short positions exceeding $730 million were liquidated as the price surged beyond this threshold. This level had been a significant barrier for several days, but once buyers regained control, Bitcoin’s price skyrocketed, reaching highs of $97,200.
This movement boosted morale among bullish traders and generated new momentum within the market. Further liquidations may occur if Bitcoin continues on its upward trajectory.
Derivatives Reflect Bulls in Charge
The derivatives market is also exhibiting bullish sentiments. As per Coinglass, long positions stand at approximately $2.14 billion, while short positions tally around $2 billion. This disparity, though not colossal, is sufficient to tip the scales in favor of bullish sentiment.
However, should Bitcoin fail to maintain levels above $97,750, a pullback could ensue, with support lying approximately at $96,650. If this support fails, potential declines could reach down to $95,400 or $95,200, with further support present at $94,400 and $93,100. Nevertheless, for now, market sentiment remains upbeat, with a keen focus on breaking the $100,000 barrier.
Featured image from Gemini Imagen, chart from TradingView
