Bitcoin Whales Still in a Strong Accumulation Zone, Falling Wedge Breakout Hints at Potential Bullish Reversal

Odaily reports that crypto analyst Scott Melker stated on the X platform that Bitcoin has broken out of a falling wedge pattern that lasted for months, hinting at a potential bullish reversal. The $88,800 range could be a key resistance level for reversing the market structure. If it cannot be breached, the bulls may struggle to maintain strong momentum.

Additionally, Bitcoin whales remain in a strong accumulation zone, with large holders (whales and sharks) currently holding between 100-1,000 or more Bitcoins rapidly absorbing Bitcoin. The absorption by this group has exceeded 300% of the annual issuance of Bitcoin. Meanwhile, Bitcoin holdings on exchanges continue to decrease, and the yearly absorption rate has fallen to -200%, indicating that investors are more inclined to hold long-term or self-custody. (Note: The yearly absorption rate compares the balance of Bitcoin on exchanges with the Bitcoin mining output for the same period.)