Large Bitcoin holders have been quietly accumulating while retail traders lock in profits, a dynamic that analysts say is strengthening the case for further upside.
Bitcoin’s recent price action may be laying the groundwork for another leg higher, as onchain data shows whales and mid-sized holders absorbing supply sold by retail investors. According to Santiment, wallets holding between 10 and 10,000 BTC have accumulated more than $5.3 billion worth of Bitcoin since mid-December, even as smaller holders reduced exposure.
Earlier coverage: Crypto Market May Need More Fear Before a True Bottom Forms, Santiment Says
“Crypto markets typically follow the behavior of whales and sharks and tend to move against the actions of small retail wallets,” Santiment said in a Monday update. The firm classifies retail wallets as those holding less than 0.01 BTC.
Santiment noted that the steady accumulation marked what appears to have been a local market bottom. While prices moved sideways for weeks, the divergence between whale buying and flat price action suggested
building pressure beneath the surface.
More recently, retail traders have begun taking profits amid fears of a bull trap or short-lived rally. Historically, Santiment said, this pattern has often preceded renewed market strength, as supply shifts from weaker hands to long-term holders.
Range-bound Bitcoin may be nearing a breakout
Bitcoin has spent much of the past six weeks consolidating in a tight range between roughly $87,000 and $94,000. That range may now be under pressure. On Monday, BTC briefly touched a seven-week high near $94,800 on Coinbase before pulling back slightly.
Onchain analyst James Check said Bitcoin’s move into 2026 has been less about headline price action and more about structural changes in supply. According to his analysis, profit-taking activity has sharply declined, while the distribution of Bitcoin among holders has become less top-heavy.
Check added that futures markets have experienced localized short squeezes, yet overall leverage remains subdued — a combination that often supports more sustainable rallies rather than speculative spikes.
Market structure supports bullish consolidation
Despite near-term resistance, analysts broadly describe Bitcoin’s current posture as constructive. Andri Fauzan Adziima, research lead at Bitrue, said Bitcoin remains in a bullish consolidation phase rather than a late-cycle blow-off.
He pointed to resistance between $95,000 and $100,000, where options markets show heavy call interest ahead of January expiries. On the downside, support sits around $88,000 to $90,000, with a break below that range likely to invite deeper corrections.
For now, the balance of accumulation by large holders and reduced retail exposure suggests Bitcoin may be better positioned for continuation than reversal, provided macro conditions remain stable.