Key Takeaways
Are Mid-Size Bitcoin Holders Driving a New Bull Run?
Yes. Addresses holding 100-1,000 BTC are piling up again, similar to the big rallies of 2017 and 2021.
Is Leverage Contributing to Bitcoin’s Recent Volatility?
Data showed a shift from long to short liquidations. Both sides are being put under pressure.
Like Bitcoin [BTC] If you see more volatility, a familiar pattern emerges.
Mid-sized holders are steadily increasing their stacks, just like in previous bull runs. At the same time, leveraged traders are facing liquidations, while short positions are coming under pressure.
Is the momentum shifting?
Whales in the making
Addresses with between 100 and 1,000 BTC (often called ‘smart money’) have quietly bought Bitcoin.
Source: Alpharactal
This behavior has so far been an important signal before major bull runs.
In both 2017 and 2021, heavy purchases by these holders were followed by strong price increases. But when they slowed down or stopped, major corrections soon followed.
While it’s still early to call a pause, this group’s continued increase in holdings suggests that the long-term belief remains intact.
Furthermore, this activity remains one of Bitcoin’s strongest long-term bullish indicators.
It’s a pattern worth watching.
Leverage creates volatility
After the steady accumulation by mid-sized Bitcoin holders, lever dynamics began to affect Bitcoin’s short-term fluctuations.
According to Joao Wedson, CEO of Alphractal, the largest liquidation zones have recently shifted from longs to shorts. Over the past thirty days, long positions have faced heavy liquidations.
Source: Alpharactal
However, recent data shows that the highest concentration of open liquidations involves short positions.
Source: Alpharactal
Over the past seven days, Bitcoin went straight into the largest short liquidation pool before returning.
Source: Alpharactal
The 3-day heatmap reflected this pattern, implying that shorts remain at risk as BTC tests higher liquidity zones again.
Losing steam, but not broken yet
At the time of writing, Bitcoin was trading around $108,292, down 0.06% on the day.
The MACD remained in negative territory, indicating weakening bullish momentum. Meanwhile, the Stochastic RSI was around 20, meaning BTC found itself in an oversold situation after recent declines.
Source: TradingView
Trading volumes showed a mild recovery, but not enough to confirm strong buying interest.
Overall, we are in a cooldown and not a full-fledged reversal, implying that Bitcoin could consolidate in the near term before its next decisive move.