Bitcoin holds its upward momentum despite pressure from the 8 billion USD transactions of whales

In an event considered a historical milestone for Bitcoin, a whale wallet that had been "hibernating" for more than 10 years unexpectedly reactivated, transferring 80,000 BTC last Friday.

This is the largest movement of long-held Bitcoin in the past eight years, creating a shockwave in the cryptocurrency community and igniting concerns about the risk of selling pressure from long-term investors.

Early miners stir up the market with 8.6 billion USD BTC

A veteran Bitcoin whale – believed to belong to a miner from the early days of the network – just shook the market by unexpectedly activating four large transactions, each transferring 10,000 BTC, for a total of 80,000 BTC, equivalent to about 8.6 billion USD.

According to data from Arkham Intelligence, this "old" Bitcoin has been inactive for over 14 years before it began to be moved early Friday morning and was completed at 15:00 UTC the same day. This is considered one of the largest transfers of long-dormant assets in Bitcoin history.

The entity behind this wallet address currently holds 161,326 BTC, valued at an estimated over 17.4 billion USD. Although it has transferred 80,000 BTC, this whale wallet still has 120,326 BTC untouched – a number that the market cannot ignore.

The liquidity cluster at the $110,000 mark indicates a price recovery potential

The sudden circulation of long-standing coins is often seen as a negative signal for the market. This move has triggered a wave of sell-offs, causing the price of Bitcoin to plummet and closing Friday's session around the level of $107,000.

Despite efforts to recover from the shock caused by the whale, Bitcoin has only slightly risen to $108,196, recording a 1% decrease in the last 24 hours.

However, short-term selling pressure has not yet overshadowed the long-term bullish outlook. On-chain data from Coinglass shows that the upward trend remains intact, as the BTC liquidation heatmap shows a dense cluster of liquidity around the $110,567 mark.

BTC liquidation heatmap | Source: CoinglassThe liquidation heatmap is a tool that allows investors to identify price levels with many leveraged positions that are at risk of liquidation. These areas typically shine brighter, reflecting the potential for strong volatility due to position closing or reversal activities.

Notably, liquidity clusters often act as "price magnets" — attracting market volatility towards those areas to trigger stop-loss orders or initiate new positions.

In the current context, the liquidity cluster around $110,567 indicates that buying pressure or the activity of closing (Short) positions is increasing rapidly. If the bulls can maintain momentum and overcome the barriers from the spot market, Bitcoin has a real chance to break out again in the short term.

The derivatives market still maintains confidence

The funding rate of Bitcoin continues to remain in positive territory, despite unusual fluctuations due to the activities of whales. As of now, this index stands at 0.006% — a signal indicating that futures traders are still maintaining a bullish stance and prioritizing holding long positions (Long).

The funding rate is a periodic payment between participants in the perpetual futures market, aimed at adjusting the contract price to be close to the spot market. When this rate reaches a positive level, holders of the (Long) position will have to pay a fee to those holding the (Short) position – reflecting optimistic sentiment and the expectation of price increases. Conversely, if the funding rate turns negative, the (Short) position will be the one incurring the fee, indicating a bearish trend and expectations of price decreases.

The funding rate of Bitcoin | Source: CoinglassRecently, the funding rate of BTC has remained positive even after a large amount of Bitcoin "hibernating" was moved by long-term whale wallets, which has somewhat reinforced investors' confidence in the long-term prospects of this coin. This indicates that market sentiment remains strong, despite short-term disruptions.

BTC maintains its position after significant fluctuations: Is the next target $110,000?

Although the unexpected move from a long-time whale has caused a portion of investors to panic and rush to sell off, the current technical indicators suggest that the Bitcoin market is still absorbing the supply pressure well, without a significant reversal in sentiment being recorded. The majority of traders still maintain their confidence in the upward trend.

Daily BTC/USDT chart | Source: TradingViewIf this optimistic sentiment continues to be maintained, BTC could fully regain its momentum and aim for the level of $109,267. Successfully conquering this level could pave the way for a price increase to the region of $110,442.

On the contrary, if selling pressure significantly increases, the price of BTC may retreat to the support level of $106,259. In a more negative scenario, when the downtrend prevails, the price could even continue to drop to the area of $103,952.

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