Bitcoin’s price action over recent weeks has remained largely rangebound, but on-chain data suggests underlying market dynamics may be turning more constructive.
According to blockchain analytics firm Santiment, accumulation by large holders alongside recent profit-taking by smaller retail traders could set the stage for renewed upward momentum across the crypto market.
Whale accumulation points to bullish divergence
Santiment said crypto markets tend to follow the behavior of large “whale and shark” wallets while often moving in the opposite direction of small retail holders.
In its analysis, whales and sharks are defined as wallets holding between 10 and 10,000 bitcoin, while retail traders typically hold less than 0.01 BTC.
Since mid-December, this large-holder cohort has accumulated a combined 56,227 BTC.
Santiment described this period as marking crypto’s local bottom, adding that even though prices remained relatively flat afterward, the accumulation created a bullish divergence that was “bound to produce at least a minor breakout.”
The on-chain platform noted that these dynamics have strengthened further in recent sessions.
Retail traders have begun taking profits, driven by expectations that the current move may be a bull trap or short-lived rally.
Historically, Santiment said, this pattern — large holders accumulating while smaller traders reduce exposure — has often preceded periods of market cap growth.
Based on these trends, the firm concluded that there is a higher-than-usual probability that the overall crypto market could continue to expand in the near term.
Bitcoin tests the upper end of its range
Bitcoin has traded mostly sideways for about six weeks, fluctuating between roughly $87,000 and $94,000 since mid-to-late November.
This prolonged consolidation has left the market watching closely for a decisive breakout or breakdown.
In late trading on Monday, bitcoin touched a seven-week high of $94,800, placing it near the upper boundary of its recent range, according to TradingView data.
The move has renewed debate over whether bitcoin can sustain a push higher or whether it risks another rejection near resistance.
Market analyst James Check said bitcoin is beginning 2026 with a rally toward $94,000, but emphasized that the more important development lies beneath the surface.
He pointed to a significant redistribution of supply, noting that a previously “top-heavy” concentration has eased from 67% to 47%.
According to Check, profit-taking activity has dropped sharply, futures markets are experiencing a short squeeze, and overall leverage across the market remains relatively low.
Bullish consolidation, but key levels loom
Despite the improving backdrop, analysts remain cautious about near-term price levels. “Bitcoin remains in a bullish consolidation phase,” said Andri Fauzan Adziima, research lead at the Bitrue crypto exchange.
Adziima identified key resistance between $95,000 and $100,000, highlighting heavy call option interest around the $100,000 strike for January expiry.
On the downside, immediate support is seen in the $88,000 to $90,000 range. A break below that area, Adziima warned, could trigger a deeper correction.
For now, the combination of whale accumulation, reduced retail selling pressure, and relatively low leverage suggests that bitcoin’s consolidation may be constructive rather than distributive.
The post Whales accumulating Bitcoin while retail takes profit says Santiment appeared first on Invezz
