Bitcoin Consolidates Below $112K as Whales Accumulate, Signs Pointing Towards Potential $120K Target

• Bitcoin’s unwavering momentum keeps it straddling the $111K mark, with multiple indicators pointing toward an exciting potential surge.

• With signs of whale accumulation and a surge in ETF investments, analysts believe BTC could soon target the $120,000 threshold.

• Citing insights from CryptoQuant, market experts note that increased whale activity historically correlates with rising prices, a trend currently evident.

Bitcoin holds steady near record highs, driven by whale accumulation and robust ETF inflows, signaling potential price targets of $120,000.

Bitcoin whales accumulate more BTC

Large Bitcoin investors have been adding to their holdings in anticipation of price increases in the future. Data from market intelligence firm CryptoQuant shows that the percentage of wallets holding between 1,000 and 10,000 BTC has increased sharply since May 6, accompanying a 16% price increase over the same period.

This is a “sign of growing investor confidence,” said CryptoQuant in a May 29 post on X, adding:

“It is historically linked to higher prices.”

Ochain data provider Santiment also highlighted that aggressive accumulation is occurring among wallets holding between 100 and 1,000 BTC. In the past 6 weeks, this group has added more than 337 wallets, collectively accumulating more than 122,330 BTC, worth approximately $13.3 billion at current prices.

“Over the past 5 years of Bitcoin’s history, no tier of wallets has been more price-correlated to crypto markets than the behavior of whales holding between 100 to 1,000 $BTC.”

Additional data from Glassnode reveals the Bitcoin Accumulation Trend Score (ATS) is at 1, signifying intense accumulation by large investors. Overall, this is a positive indicator, as continued accumulation reflects bullish sentiment among this cohort of investors.

Strong spot Bitcoin ETF inflows

US-based spot Bitcoin exchange-traded funds (ETFs) continue to experience significant capital inflows, with data from SoSoValue showing these investment vehicles have recorded inflows for 10 consecutive days, totaling $4.2 billion.

According to blockchain analytics firm Glassnode, spot Bitcoin ETFs have “seen a sustained period of buy-side pressure that originated in late April, and remains strong today,” adding:

“This large and sustained buy-side pressure from both retail and institutional investors suggests confidence in the asset, providing a meaningful tailwind for the market.”

This sentiment has echoed across all Bitcoin products, highlighted by CoinShares reporting that flows into BTC investment funds totaled $2.97 billion in net inflows during the week ending May 23.

Investor sentiment stays positive

Social media platforms have sustained positive sentiment around Bitcoin and other crypto assets. The Crypto Fear and Greed Index, a barometer of investor sentiment, stands at a notable score of 74, indicating prevailing “greed” in the market.

This index being above 50 after remaining below this mark from February to April is particularly noteworthy.

Sustaining a reading in the “greed” zone since May 6 strongly indicates bullish sentiment among market players. Historically, such sentiment patterns have foreshadowed price rallies, leading some analysts to suggest a potential upcoming bull market.

Interestingly, this index is considerably lower than the peaks of 82 in March 2024 and 94 in December 2024, marking local tops, implying that the Crypto Fear and Greed Index could still have room to rise into the “extreme greed” category, possibly pushing Bitcoin prices toward new heights.

Bitcoin’s OI remains high post-ATHs

Open interest (OI) for Bitcoin futures contracts has demonstrated robust growth since the sub-$74,000 local low in April, rising to a record high of $80.5 billion on May 23 from $50.8 billion on April 8, according to CoinGlass data.

The current OI stands at $78.4 billion, marking a substantial $27.6 billion or a 54% increase over the last 50 days, indicative of a buildup of leverage typically associated with bullish conditions.

Supporting BTC’s potential upside is the open interest in options contracts, which has surged to an all-time high of $46.2 billion from $20.4 billion, according to Glassnode.

Commenting on this uptick, Glassnode noted:

“The rapid expansion of options open interest reflects a maturing investor base increasingly employing options to execute more sophisticated strategies.”

High open interest sustained over time has historically led markets into euphoric phases. With Bitcoin price hovering around all-time highs, this growing investor interest in the derivatives market is likely to positively influence prices.

Bitcoin price eyes $120K next

Liquidation data reveals a thick cluster of orders between the $111,000 and $115,000 levels, which can act as a magnet pulling prices toward them as market makers hunt for liquidity.

If BTC continues its upward trajectory, it could pressure short sellers, forcing them to exit their positions and triggering a cascade of buy orders.

Such dense activity above the all-time highs suggests that the path of least resistance is upward in the near term. Glassnode posits that Bitcoin’s price “still has room for further growth,” referencing the upper MVRV band around $120,000.

“As the market ventures into a phase of price discovery, the $120K level appears as a focal point, with sell-side pressure expected to escalate around this zone.”

According to Cointelegraph, Bitcoin is projected to reach $120,000 in the first half of 2025 as it aspires toward the $200,000 mark by year-end.

Conclusion

In summary, Bitcoin’s current momentum, driven by whale accumulation, strong ETF inflows, and positive investor sentiment, presents a compelling case for potential price advancements. As optimism prevails in the market, players remain watchful of the critical $120,000 mark, which could pave the way for future price surges.