Will Two Key Elements Push Bitcoin Beyond the $98K Mark?

Key Points

• Whale accumulation of over 43,100 BTC and falling exchange reserves indicate bullish strength for Bitcoin.
• Bitcoin’s technical and on-chain signals suggest a potential breakout towards $98K.

Bitcoin’s rising network activity and an ascending triangle pattern are supporting a potential breakout towards $98K. The cryptocurrency’s MVRV ratio has recently formed a golden cross with its 365-day SMA, a pattern that has historically preceded major bullish rallies.

While the price of Bitcoin hovers just below key resistance, bulls are intensifying accumulation. The convergence of these technical and on-chain signals is raising expectations for a breakout.

Whale Accumulation and Exchange Reserves

Over the past two weeks, whales have acquired 43,100 BTC, increasing their holdings from 3.498 million to 3.541 million BTC. This aggressive accumulation signals strong conviction among large investors and typically precedes bullish momentum.

In addition, the exchange reserves have declined by 2.33% in just seven days, now resting at 2.48 million BTC. This sustained decline indicates that fewer coins are available for sale on centralized exchanges, often leading to a tightening supply dynamic that can amplify price surges.

Potential Breakout for Bitcoin

Bitcoin is forming an ascending triangle on the 4-hour chart, with the price repeatedly testing the $95.3K resistance. If Bitcoin closes above this threshold, it could rally towards $98K.

The NVT ratio has dropped to 187.33, suggesting increased transaction volume relative to Bitcoin’s market cap. This decline typically signals healthier network fundamentals and growing utility, supporting a sustainable price move.

Despite bullish signals, sentiment remains slightly bearish. However, sentiment often trails behind actual market shifts, particularly when large investors are driving accumulation. If Bitcoin breaks above $95.3K, sentiment could quickly reverse and attract broader market participation.