Bitcoin Tops $120,000
Bitcoin surged this week, climbing 10% and breaking above $121,000, its highest level since mid-August. Data suggests that key investor groups are shifting their behavior — after weeks of selling, they are returning to buying. Bitcoin reached more than $121,000 on Thursday, the highest since August 14, when it last hit a record. The rally is driven mainly by changes in the activity of different groups of crypto holders.
Investors start buying again
One of the main indicators is the so-called Accumulation Trend Score, which tracks whether investors are, on average, buying or selling. Its current value is 0.62. A reading above 0.5 means buying outweighs selling. The closer the score is to 1, the stronger the buying trend; closer to 0 signals selling.
Wallet size groups show a notable shift. Holders of 100 to 1,000 bitcoins moved from selling to large-scale buying this week. Investors with 10 to 100 bitcoins acted similarly. Smaller holders with less than 10 bitcoins are still selling but at a slower pace, with signs of a return to buying. The exception are the biggest players, holding more than 10,000 bitcoins, who continue to sell. Overall, while large investors are taking profits, small and mid-sized holders are betting on further growth.
U.S. trading hours drive the rally
The U.S. market plays a crucial role. According to Velo, bitcoin rose 8% between Monday and Thursday during U.S. trading hours. This indicates that American investors are driving the recent rally. After a summer of selling and profit-taking, they are once again turning optimistic.
Bitcoin is now experiencing one of its strongest rallies in recent months. With the price above $121,000, small and mid-sized investors are buying again, and U.S. markets are fueling the rise. While the largest holders are still selling, overall market sentiment is positive. If this trend continues, bitcoin could soon test new price levels, especially if big players rejoin the rally.
Sources: