Bitcoin Whales Back as Wallets Hit 3-Month High, Will Price Follow?

Bitcoin's number of whale and shark wallets has reached a three-month high. According to the on-chain analytics platform Santiment, the number of wallets holding at least 10 BTC — worth more than $1.07 million at current prices — has climbed to its highest level since March 12. Bitcoin's network number of wallets, with at least 10 BTC, has returned to 152,280 for the first time since March 12.

Santiment noted that as markets have been volatile, smart money has accumulated on most retail panic sell cycles. Whales are known to typically buy at discounts during periods of dip and consolidation.

Bitcoin dipped below $99,000 over the weekend due to market uncertainty, briefly testing support around $98,225. The sharp price swings triggered increased volatility on the futures market. The move was swiftly reversed, with the price rising above $108,000.

The market appears to be in a cool-down phase following massive profit-taking. While large gains have been made, momentum is now moderating as realized profitability begins to taper off.

Will BTC price follow?

The market is currently in a holding pattern. While the structure remains supportive, a breakout to new highs would most likely necessitate a significant increase in demand, activity and conviction.

At press time, BTC was down 0.27% in the last 24 hours to $107,168 and up 1.2% weekly. After three days of sharp increases, BTC reached $108,345 on June 26 before slightly declining.

Despite the market rebounding to the $100,000-$110,000 level, signs of declining profitability and slow on-chain activity are becoming more visible. These tendencies are typical of choppy consolidation periods when volatility diminishes and investor interest declines.

Until profitability and activity metrics improve, the possibility of a breakout to new all-time highs remains low. For the time being, the market looks to be digesting previous gains while waiting for new momentum and demand to emerge.