Bitcoin is undergoing a critical retest of its 50-day exponential moving average (EMA), a key technical indicator renowned for historically significant support. The recapture of this level reinforces its importance, having previously catalyzed a significant 25% price surge.
This pivotal support coincides with the neckline of Bitcoin’s prominent inverted head-and-shoulders (IH&S) chart pattern. Identified as a bullish reversal formation, this IH&S pattern projects a potential price target near $148,250, supported by broader market expectations pointing towards the $150,000 zone.
Concurrent with the technical setup, large Bitcoin holders, commonly termed ‘whales,’ engaged in substantial selling activity. Approximately 80,000 BTC, valued at an estimated $9.6 billion, was offloaded soon after Bitcoin surpassed the $120,000 mark.
Analysts interpret this whale behavior as a cyclical profit-taking phase. Such large-scale selling is viewed as a mechanism for market consolidation, absorbing short-term selling pressure and allowing for renewed accumulation by long-term investors before potential new all-time highs. The current retest phase and whale activity are seen as setting the stage for renewed upward momentum.