Wallets holding 100 to 1,000 BTC have accumulated 113,950 Bitcoin since July 15, raising their combined balance by 2.22% to 5.24 million BTC, according to Santiment. The accumulation comes as Bitcoin briefly climbed to $87,000 earlier this week before retreating and consolidating near $84,000.
The latest buying raises a key question: is this steady demand helping establish a foundation for a breakout, or is the rebound largely the result of short covering that could fade once leverage comes out of the market?
Not all analysts view the move as evidence of a broad change in risk appetite. Bernardo Brites, co-founder of Trace Finance, said the rapid recovery was partly driven by a short squeeze, while the more important issue is identifying the source of the new capital entering the market.
That distinction is important when evaluating Bitcoin’s current resistance levels. The price structure may represent more than a straightforward technical breakout, with macro-driven positioning also playing a role.
Santiment has monitored wallets in the 100-to-1,000-BTC range for five years, and their accumulation patterns have often moved alongside broader market trends. Previous periods of significant buying have frequently occurred before or during stronger Bitcoin advances. The latest data shows these wallets continued accumulating during the recovery, indicating that the rally is not being driven exclusively by smaller retail investors.
Bitcoin Faces $88,000-$90,000 Resistance
Bitcoin’s technical setup provides another layer to the accumulation and ETF data. The cryptocurrency recently reclaimed its 365-day moving average near $80,500, a level it last moved above in March 2023. Bitcoin’s previous recovery through that threshold preceded a much larger advance. The asset has also broken through the $76,000-$81,000 supply zone that had restricted its upside for weeks.
The $88,000-$90,000 region is particularly important because of the concentration of Bitcoin supply around those levels. Rather than being significant simply because they are round numbers, the zone could attract increased selling as holders who accumulated there look to exit near breakeven or take profits. This makes $90,000 a key area for determining whether the current advance can continue.
ETF flows and stablecoin liquidity could provide further clues about the rally’s durability. Continued ETF inflows accompanied by growth in stablecoin supply would strengthen the underlying demand picture as Bitcoin approaches resistance. On the other hand, weakening ETF demand while Bitcoin remains below $88,000 could increase the risk of a pullback as leveraged traders reduce positions.
CryptoQuant founder Ki Young Ju has also argued that the current cycle could deliver a 3-to-5x Bitcoin rally rather than the 10x surges seen during previous cycles. He has cited greater market maturity and rising institutional participation as factors that could restrain extreme price swings.
That assessment does not establish whether Bitcoin will clear $90,000. Instead, it places the current resistance test within a broader cycle framework, with the market now focused on whether sustained demand can support another leg higher.
