Key Takeaways:
- Over 622 new Bitcoin wallets holding 10+ BTC were added in under four weeks.
- The MVRV Z-Score nears a major resistance trendline, signaling the potential for a breakout or reversal.
- Consecutive Hash Ribbon buy signals indicate strong underlying network support.
Bitcoin recently touched a high of $108,947, edging closer to its previous all-time high of $112,000. What has caught analysts’ attention is the sharp turnaround in large wallet activity.
After three months of consistent decline in whale and shark wallets, those holding 10 or more BTC, the trend has reversed with 622 new such wallets added in less than four weeks, according to on-chain data from Santiment.
This rebound suggests renewed interest from long-term holders and institutional-sized investors. Historically, such wallet growth has preceded major bullish price moves, especially when it follows a period of consolidation or weakness. The current trend could indicate stronger confidence in Bitcoin’s next leg up, particularly with prices hovering near historic highs.
MVRV Z-Score Nears Decision Point
Alphractal, a prominent crypto market commentator, highlighted that Bitcoin is now approaching a critical resistance zone on the MVRV Z-Score metric.
This tool measures how much Bitcoin’s market value deviates from its average realized value, serving as a gauge for overbought or undervalued conditions. When the Z-Score is high, as it is now, the risk of a market correction increases.
The current Z-Score level is approaching a long-standing trendline, which has either halted rallies or broken to initiate explosive moves in past cycles.
Whether Bitcoin breaks above this level or gets rejected may decide whether BTC makes a run beyond $112,000 or faces a temporary correction. It’s a moment of technical tension that traders are closely monitoring.
Bitcoin Mining Signal Hints at New Uptrend
Adding to the bullish sentiment is a back-to-back Hash Ribbons buy signal, a rare occurrence that has historically preceded price surges.
This signal, derived from the health of the Bitcoin mining network, appears when miner capitulation ends and network strength recovers. CryptoCon pointed out that this signal has never occurred during periods of cycle tops, and with low current volatility, the setup hints at a possible sustainable uptrend.
The lack of movement into high volatility zones, which usually precede major cycle tops, also suggests Bitcoin might still have room to grow before entering the danger zone. Combined with other indicators, this paints a picture of a market poised for another leg up if it can break through current resistance.
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