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Key Highlights:
- Bitcoin whale ratio climbs to 0.5 as large holders send coins to exchanges
- Bitcoin dominance reaches 60% as altcoins continue to underperform
- BTC retests long-term wedge top after rallying past $105K
Bitcoin is pulling back after reaching $105K, while whale activity on exchanges is rising again. At the same time, BTC was retesting a key support level. Moving ahead, its next move could set the tone for the weeks ahead.
Bitcoin Cools Off as Whales Wake Up
Bitcoin peaked at $105,000 in late 2024 before returning to a price level of $83,900. The price decline coincides with increasing whale exchange activities.
In the middle of 2024, the Exchange Whale Ratio fluctuated between 0.3 and 0.5. Bitcoin remained stable within the $60K to $70K price range. This stability was largely due to whale investors’ lack of significant activity.
However, by October, everything shifted. BTC experienced a significant price increase from $68K to $105K at the same time when the ratio dropped under 0.2.
Few large Bitcoin holders sent their coins to exchanges according to the low ratio. The absence of whale-selling activity created more room for the market to rise.
However, early 2025 brought a reversal. The whale ratio rose to 0.5 when Bitcoin experienced a price correction. This suggested that major investors were getting ready to sell their coins.
Historical data shows that increased whale activity leads to increased selling pressure. The market tends to display short-term caution when this indicator appears, although a crash does not necessarily occur.
Mixed Signals in On-Chain Metrics
Moreover, CryptoQuant’s Bull Score Signals showed positive signs through 2024 while monitoring trader profit margins and stablecoin movement.
The indicator change occurred following two years with primarily red indicators, especially the 2022–2023 bear market phase. It showed both short-term traders and long-term investors showed increased optimism.
Additionally, the P&L Index and Demand Growth demonstrated substantial improvement during the late months of 2024. The market condition improved as traders profited, and Bitcoin attracted more liquidity.
However, not all indicators agreed. The Network Activity Index and Inter-Exchange Flow Pulse showed mixed signals alternating between bullish and bearish zones.
This market’s inconsistent behavior during this period matches the price pullback BTC experienced at the beginning of 2025. A few market segments show recovery signs, yet others maintain unstable or uncertain behavior.
Dominance Tilts Toward Bitcoin Again
Adding to the bullishness, the market share recovery of BTC pushed its dominance to approximately 60%. It had not occurred since early 2021. The rise of Bitcoin has resulted in a continuous decline of altcoins throughout the market.
In 2021, altcoins reached their peak dominance level, which exceeded 60%. That was during the DeFi boom, the NFT craze, and the emergence of numerous new chains that the market experienced.
However, the market dynamics started to change during the middle of 2023. Bitcoin began receiving increased capital inflows as investors favored its stable value and deep market liquidity.
The percentage of altcoins in the market dropped to less than 40% in early 2025. This showed that investors are increasing risk avoidance during uncertain times by choosing BTC over alternative cryptocurrencies.
The market performance of altcoins weakened during Bitcoin’s period of dominance. Historically, the start of “altseason” requires Bitcoin to maintain stability after it consolidates or cools down.
Retest in Play: Bitcoin Prepares for Its Next Move
Zooming out, the long-term price trajectory of BTC remains consistent in its current state. A broadening wedge pattern in the chart has historically indicated upcoming large price movements.
In previous cycles, Bitcoin often hit peak levels before experiencing pullbacks. After these pullbacks, it typically formed consolidation zones that followed wedge patterns. The token would retest the higher boundary after breaking out before beginning its subsequent upward trajectory.
BTC showed signs of performing a retest phase. The price reached its peak around $105K after breaking through the wedge pattern, and then it retreated to $83.9K. It maintained a position above the trendline.
According to the technical description, this behavior is typical. Following the prior resistance phase, the resistance point becomes support.
The lower portion of the chart’s momentum indicator is getting close to a crucial milestone. Every time the price of Bitcoin has breached the red resistance line, it has initiated significant upward surges.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
