Home Finance SKN | Bitcoin Pulls Back After $78K Rally as Whales Continue Accumulating ‘Cheap’ BTC
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SKN | Bitcoin Pulls Back After $78K Rally as Whales Continue Accumulating ‘Cheap’ BTC

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Key Points:

• Bitcoin’s consolidation phase extended into a fourth week as the cryptocurrency continued trading between key support near $74,000 and resistance around $78,000 to $80,000.

• Market analysts identified large liquidation clusters around the $75,675-$75,700 range, which continue acting as short-term liquidity magnets for price movement.

• Despite Bitcoin failing to sustain its breakout above $78,000, Blockstream CEO Adam Back revealed that a major whale has been steadily accumulating approximately 450 BTC per day using a TWAP strategy.

Bitcoin Remains Locked in Consolidation Range

Bitcoin continued trading within a tight consolidation structure as bulls and bears battled for control between major support and resistance levels.

The cryptocurrency briefly surged to approximately $78,164 during intraday trading before quickly retreating back into its established range.

The move marked another failed attempt to decisively reclaim the important $78,000 level, extending Bitcoin’s sideways market structure into a fourth consecutive week.

Traders continue closely monitoring support near $74,000 while strong resistance remains concentrated between $78,000 and $80,000.

Analysts Identify Psychological Liquidation Zones

According to analysts at Hyblock, Bitcoin’s temporary move above $78,000 triggered significant liquidation and position-closing activity from both long and short traders.

The firm explained that many traders holding underwater long positions likely used the rally as an opportunity to exit at breakeven after recovering losses.

At the same time, short sellers who had been profitable during Bitcoin’s previous decline also likely closed positions near breakeven levels to avoid further risk if the rally accelerated.

Hyblock described the area as a major “psychological” zone where trader behavior intensified due to the concentration of leveraged positions.

Liquidity Continues Driving Price Action

Market analysts also highlighted how liquidity clusters continue acting as magnets for short-term Bitcoin price movement.

Hyblock identified one of the largest liquidity concentrations building rapidly between approximately $75,675 and $75,700.

Such liquidity zones often attract price action because leveraged positions and stop-loss orders accumulate in those areas, creating opportunities for volatility and forced liquidations.

The concentration of liquidity near current prices reinforces the idea that Bitcoin remains trapped in a highly reactive and rangebound market structure.

Whale Quietly Accumulates Bitcoin

Despite the lack of a sustained breakout, long-term accumulation activity continues behind the scenes.

Blockstream CEO Adam Back revealed that a large Bitcoin whale has been using a time-weighted average price (TWAP) strategy to steadily accumulate Bitcoin during the consolidation phase.

According to Back, the whale has been purchasing approximately 450 Bitcoin per day for the past eight and a half days while taking advantage of what the investor considers “cheap” BTC prices.

TWAP strategies are commonly used by institutional investors and large holders to gradually build positions without causing major market disruptions or sharply moving prices higher.

The continued accumulation suggests that at least some large market participants still view current Bitcoin prices as attractive despite ongoing macroeconomic uncertainty.

Futures Selling Continues Pressuring Bitcoin

Analysts noted that the recent price action reflects a classic futures-led selloff dynamic.

In this setup, aggressive selling through derivatives markets pushes Bitcoin prices lower, while spot market buyers step in to absorb some of the selling pressure.

This interaction has helped reinforce the strength of Bitcoin’s support near $74,000, even as leveraged traders continue creating short-term volatility.

Spot buying activity indicates that some investors remain willing to accumulate Bitcoin during periods of weakness rather than abandoning positions entirely.

Resistance Remains Heavy Above $78K

Order book depth data continues showing significant selling pressure concentrated above current price levels.

Analysts observed increasing sell orders beginning around $77,700, with particularly heavy resistance building between $78,000 and $80,000.

The thick concentration of asks in that range suggests Bitcoin could continue struggling to establish sustained upside momentum without a significant increase in institutional demand or macroeconomic catalysts.

Until that resistance is broken decisively, traders expect Bitcoin’s rangebound conditions to persist.

Market Awaits Stronger Catalyst

The broader crypto market remains heavily influenced by macroeconomic developments, inflation expectations and institutional flows.

While whale accumulation and resilient spot demand provide support for Bitcoin near current levels, weakening ETF inflows and cautious institutional positioning continue limiting breakout potential.

Analysts say the market likely needs a major catalyst — such as improving monetary policy expectations, stronger ETF inflows or reduced geopolitical uncertainty — before Bitcoin can escape its current consolidation range.

For now, Bitcoin remains caught between long-term accumulation optimism and short-term macroeconomic caution as traders continue watching whether support near $74,000 can hold against persistent resistance near $78,00

 

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