The Bitcoin market has been experiencing high volatility, with traders uncertain about the impact of various factors on the price movement. Despite expectations of bullish and bearish scenarios, BTC prices have remained within a narrow range, offering short-term relief but raising concerns about long-term sluggish behavior.
Following a rejection at $86,800, traders have turned pessimistic, leading to a decrease in trading volume to below $20 billion. Low volume often results in range-bound consolidation and stagnant prices. This has prompted the question of whether Bitcoin prices will rise or crash in 2025.
Factors influencing future BTC price action include whale accumulation reaching peak levels. Institutional investors are showing increased interest, with the number of wallets holding over 1000 BTC growing steadily. Whale activity can significantly impact Bitcoin prices, and the rise in whales indicates growing investor confidence.
In addition to whales, new investors are entering the market, taking advantage of recent price dips. The influx of new investors following a price drop from $96,500 to $82,300 suggests growing confidence in Bitcoin. Data from Cryptoquant shows that new investors have accumulated approximately 172,705 BTC, signaling bullish sentiment.
These on-chain indicators point to increased confidence among whales and new investors, which is crucial for maintaining market volatility. Large transfers of close to 3000 BTC between unknown wallets may further shake up volatility in the coming weekend, hinting at potential whale movements. A break above the key resistance level at $84,800 could set a bullish tone for the quarterly close above $85,000.
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