Bitcoin price fluctuates as whales resume cautious buying

Bitcoin's (CRYPTO:BTC) price has dropped 2.5% over the past week, signaling a weakening downtrend as whale activity shows signs of cautious accumulation.

The Average Directional Index (ADX), a key trend strength indicator, has fallen sharply to 18.81 from nearly 50 a week ago.

According to TradingView data, this low reading suggests Bitcoin’s current downtrend may be losing momentum, potentially leading to a consolidation phase characterised by reduced volatility and sideways price movement.

"Bitcoin’s ADX decline highlights the fading momentum behind recent price movements," analysts noted.

Typically, an ADX below 20 reflects a weak or nonexistent trend.

Meanwhile, whale activity offers further insights into market sentiment.

Addresses holding at least 1,000 BTC saw a sharp decline from 2,108 to 2,061 between December 16 and December 17, suggesting significant sell-offs or redistribution among large investors.

By December 24, the figure dropped further to 2,049.

Recently, whale holdings stabilised and increased modestly, reaching 2,056 as of December 30.

"This cautious accumulation by whales could indicate renewed confidence in Bitcoin’s price trajectory," market observers suggested.

Historically, whale behavior has served as a precursor to broader market trends, with accumulation hinting at potential price growth and large-scale selling signaling possible downturns.

Bitcoin is currently trading near critical levels.

Resistance at $94,200 and support at $90,700 will likely determine the cryptocurrency's next directional move.

Breaking through resistance could propel the price higher, while a drop below support might reinforce bearish sentiment.

As the market observes these dynamics, Bitcoin’s future price movements remain uncertain.

Analysts suggest monitoring both trend indicators like ADX and whale activity for clues on whether consolidation or significant directional shifts are imminent.

At the time of reporting, the Bitcoin price was $92,693.02.