Bitcoin has recently demonstrated significant price activity, reaching a seven-week high of $94,800 on the…

Lede

Bitcoin has recently demonstrated significant price activity, reaching a seven-week high of $94,800 on the Coinbase exchange during late trading on Monday. This movement comes after a prolonged period where the cryptocurrency remained rangebound, fluctuating between approximately $87,000 and $94,000 since the mid-to-late November period. Analysts suggest that the trajectory of the crypto markets typically aligns with the activities of major stakeholders, specifically those categorized as “whales” and “sharks.” These entities, which maintain balances between 10 and 10,000 BTC, have shown a distinct pattern of accumulation in recent weeks.

In contrast to these larger holders, retail traders—defined as those with wallets containing less than 0.01 BTC—often move in the opposite direction of the broader market trend. Since mid-December, whales and sharks have collectively increased their holdings by 56,227 BTC. This accumulation occurred while Bitcoin spent approximately six weeks trading mostly sideways. This divergence between the actions of large-scale holders and retail participants is often viewed as a precursor to market breakouts. Because markets typically follow the path of these key shark and whale stakeholders, the persistent accumulation throughout the end of the year has established a bullish divergence that analysts believe was bound to produce at least a minor breakout from the established range.

Context

The current market environment follows a six-week phase of sideways trading. During this time, Bitcoin was confined to a specific price range, staying between approximately $87,000 and $94,000. This period of consolidation began in mid-to-late November and lasted through the turn of the year. Analyst James Check has noted that Bitcoin is entering the year 2026 with a rally toward the $94,000 level. Beyond the immediate price action, Check highlighted a significant shift in the underlying supply mechanics of the network that may be more impactful than the price itself.

Specifically, there has been a notable rebalancing of the “top-heavy” supply of Bitcoin. On-chain data indicates that this metric has shifted from 67% down to 47%. This redistribution suggests that the concentration of supply among a specific group of holders has decreased, potentially creating a more stable market structure. Furthermore, this rebalancing has occurred alongside the aforementioned whale accumulation, which saw more than 56,227 BTC added to large-scale wallets since mid-December. Such structural changes under the hood often accompany periods of price discovery or significant shifts in market sentiment as the asset moves away from established support levels. This redistribution of supply away from a top-heavy state is a key component of the current market story as the asset attempts to break out of its six-week sideways trend.

Impact

The impact of these on-chain movements is reflected in the current technical positioning of Bitcoin. Following the tap of $94,800 on Monday, the asset is testing the upper boundaries of its recent range. Market experts, including Andri Fauzan Adziima, who serves as the research lead at the Bitrue crypto exchange, categorize the current state of the market as a bullish consolidation phase. The collective accumulation of 56,227 BTC by whales and sharks since mid-December has provided a buffer against sell-side pressure, particularly as retail traders might exit positions based on different market expectations.

This shift in ownership from smaller retail wallets to larger stakeholders is often interpreted by analysts as a signal for potential market cap growth throughout the crypto sector. Historically, when whales—holders of 10 to 10,000 BTC—accumulate while smaller participants with less than 0.01 BTC sell, it indicates a transfer of assets into “stronger hands.” This dynamic contributes to the current market cap growth potential, as the reduced supply available to retail traders often leads to decreased liquidity on the sell side. Because the market typically follows the path of these key stakeholders, the accumulation seen since mid-December is viewed as a foundational element for the current upward market momentum. This trend suggests a higher probability than usual for continued market cap expansion as the asset moves toward its next major technical obstacles.

Outlook

Looking ahead, the market faces specific technical levels that will likely determine the next major trend. According to Andri Fauzan Adziima of Bitrue, the primary upside resistance for Bitcoin is currently situated between $95,000 and $100,000. This range represents a psychological and technical barrier that Bitcoin must overcome to sustain its upward trajectory beyond the seven-week highs established recently. The ability of the market to break through this resistance will depend largely on continued participation from whale and shark stakeholders who hold between 10 and 10,000 BTC.

On the downside, immediate support levels have been identified between $88,000 and $90,000. Maintaining price action above this support zone is critical for preserving the current bullish consolidation thesis. Should the price fall below $88,000, it could invalidate the recent breakout attempt and lead to a more significant correction. However, with the supply rebalancing from 67% to 47% and the substantial accumulation of 56,227 BTC that took place starting in mid-December, the market structure currently appears to favor a positive trajectory. As analyst James Check observed, Bitcoin is kicking off 2026 with a rally to $94,000, placing it at the upper bound of the range it has occupied since mid-to-late November. The coming weeks will be pivotal as the market tests the established boundaries of this range and seeks to confirm whether the recent seven-week high of $94,800 is the start of a sustained move toward the $100,000 milestone.