Bitcoin Struggles to Break Above $87,000 Resistance Despite Whale Accumulation
Despite continued accumulation by large investors, or “whales”, Bitcoin, the world’s leading cryptocurrency, has so far failed to break through the $87,000 resistance level.
In recent trading, Bitcoin’s price fell slightly to around $84,200, representing a 1.7 percent decline over the past 24 hours. Meanwhile, Ethereum, the second-largest cryptocurrency, was trading at around $2,600.
According to market analysts, Bitcoin has attempted to reach the $87,000 level at least three times since late September, but each attempt has been thwarted by selling pressure.
Bitcoin Moving Away from Exchanges
Despite the ongoing price pressure, various on-chain market indicators suggest that major market participants are continuing to accumulate Bitcoin. Since the beginning of October, large investors have purchased an additional 14,335 Bitcoin.
In addition, nearly 40,000 Bitcoin have been withdrawn from Binance, the world’s largest cryptocurrency exchange, over the past two weeks. As a result, the amount of Bitcoin held on the exchange has fallen to approximately 663,000.
In general, the movement of assets from cryptocurrency exchanges into privately controlled digital wallets is considered a positive long-term indicator, as it can signal tightening market supply and potentially support future price increases.
Federal Reserve Policy and ETF Impact
US monetary policy and developments in the American capital markets are playing a major role in Bitcoin’s inability to gain sustained momentum. Outflows from US spot Bitcoin exchange-traded funds (ETFs) have increased, reaching nearly $90 million in a single day recently.
At the same time, yields on 10-year US Treasury bonds have remained above 5.3 percent, discouraging some major investors from allocating capital to riskier assets.
However, the sharp decline in expectations of a US Federal Reserve interest-rate hike this month—from 51 percent to just 20 percent—has been viewed as a major relief for the cryptocurrency market.
Future Outlook and Caution
The cryptocurrency market recently experienced a significant decline following highly leveraged trading activity. In just 24 hours, approximately $1.02 billion worth of crypto positions were liquidated, with the majority involving long positions placed in anticipation of further price increases. Overall, the global cryptocurrency market’s total capitalisation currently stands at around $2.85 trillion.
According to analysts, the $84,000–$85,000 range is currently serving as a strong support zone for Bitcoin. For the market to make a sustained recovery, Bitcoin will need to establish a firm position above the $87,000 level.
Given the broader uncertainty, financial experts are advising investors to avoid taking large one-time risks and instead consider investing gradually and cautiously.
//DBTech/BMT/OR//
