What to know:
- Binance whales have built a major buy wall around $60,800, signaling strong demand as Bitcoin trades near critical support.
- Analysts remain divided between short-term resistance near $63,500 and a longer-term cycle that could still test much lower levels.
- Momentum and volume indicators are improving, but experts say a lasting recovery depends on sustained buying participation.
Bitcoin is entering another decisive phase as large investors step in to defend key price levels while technical indicators suggest the market may be stabilizing after weeks of weakness. Although recent buying has prevented a deeper sell-off, analysts say Bitcoin still faces major hurdles before confirming that a broader recovery is underway.
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Binance Whales Step In as Bitcoin Tests Critical Support
Market analyst CW reported that Binance Bitcoin whales have formed a new buy wall around $60,800, indicating that large investors are placing substantial buy orders to absorb selling pressure.
The cryptocurrency was unable to maintain above the critical $63,400-$63,500 region following a temporary surge towards $63,990, setting up a bearish trap, which resulted in profit booking by traders, sending the asset to the $61,297 level.
Source: X
However, bulls were able to send the price above the $62,000 level, indicating buying interest exists. The analyst believes that a decisive break above $63,500 would reignite the bullish momentum towards $64,000, but failure to do so may result in a decline to $61,300 or even $60,400-$60,600 levels.
Why the $60.8K Buy Wall Matters for the Market
Large buy walls become noteworthy due to their ability to reduce the speed of decline of the asset price in case there is an intense sell-off by providing liquidity in such cases. It is possible to change such orders, but normally they reflect the views of market whales.
This is a crucial level for short-term traders to be aware of. Long-term investors might see continued buying from whales at current levels as bullish even after price volatility. However, analysts caution that support will hold only if buying continues to soak up new selling.
Long-Term Cycle Analysis Suggests Bitcoin Is Near Another Turning Point
Analyst Crypto Patel reviewed the Bitcoin monthly chart and found that the crypto has been holding on to the same long-term bullish channel for almost 13 years now.
Patel highlighted the post-crisis behavior of Bitcoin markets in 2013, 2017, and 2021, where each bear market decline has been followed by a prolonged accumulation and build-up phase resulting in all-time high prices.
Source: X
The bear market drawdowns have reduced significantly, from around 87.5% to 79.3%, indicating increasing participation of institutional investors and improved trading activity. He also noted the four-year cycle of Bitcoin and suggested that any major pullback may see the long-term channel at around $35,000.
Momentum Improves, But Buyers Must Confirm the Recovery
Blockchain analytics firm Swissblock believes Bitcoin is showing early signs of stabilization after months of selling pressure. According to its chart analysis, price momentum has recovered from extremely negative readings, while OBV readings have improved as well. It implies that selling pressure has decreased, and buying pressure has started increasing.
Source: X
However, neither indicator is above the neutral line yet, implying that the number of institutional purchases remains low. The company claims that an uptrend needs greater volume to be sustainable; therefore, the current recovery is only a transitional stage.
What Investors Should Watch Next
Bitcoin is currently at a very crucial point, with the potential of breaking out either way from support or resistance. Breaking out to the upside will likely mean a faster recovery, while a breakout to the downside may likely lead to further selling pressure. The buyers have increased their accumulation, and momentum has been gaining strength.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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