Wallets holding between 100 and 1,000 BTC have accumulated 113,950 Bitcoin since July 15, pushing their total holdings 2.22% higher to 5.24 million BTC, according to Santiment. The accumulation comes as Bitcoin briefly rose to $87,000 earlier this week before retreating and settling around $84,000.

The steady buying raises the question of whether these holders are building a stronger base for another breakout or whether the recent recovery is largely short-squeeze driven and could lose strength as leveraged positions are unwound.

Trace Finance co-founder Bernardo Brites said the rapid rebound was partly fueled by short covering, adding that the source of new capital remains an important factor when assessing the move.

This distinction matters as Bitcoin approaches major resistance, since the current price action may reflect both technical momentum and broader macro positioning rather than a straightforward technical breakout.

Santiment has followed the 100-to-1,000-BTC wallet group for five years. Its accumulation patterns have often tracked Bitcoin’s broader market direction, with periods of strong buying frequently appearing before or alongside larger price moves. The latest data shows the cohort continued purchasing Bitcoin during the recovery, indicating that demand extends beyond retail traders.

Bitcoin Targets $88,000-$90,000 Resistance

Bitcoin’s technical structure has also strengthened. The cryptocurrency reclaimed its 365-day moving average near $80,500, a level it last recovered in March 2023. Bitcoin’s move above that average at the time preceded a much larger rally. The cryptocurrency has also broken through the $76,000-$81,000 supply zone that had restricted price gains for several weeks.

The $88,000-$90,000 region is now a key area because of the large concentration of Bitcoin supply accumulated around those levels. As the price approaches the zone, some holders may increase selling pressure, making the $90,000 mark an important test for the rally.

ETF flows and stablecoin liquidity could provide further evidence of whether demand is strong enough to sustain the advance. Continued ETF inflows alongside rising stablecoin supply could strengthen the market’s foundation near resistance. A slowdown in ETF demand while Bitcoin remains below $88,000, however, could increase the risk of a pullback as leveraged traders unwind positions.

CryptoQuant founder Ki Young Ju has argued that the current Bitcoin cycle could deliver a 3-to-5x rally rather than the 10x surges seen in previous cycles. He has attributed the potential difference to greater market maturity and increased institutional participation, which could limit extreme volatility.

That outlook does not determine Bitcoin’s next move above $90,000, but it provides context for the broader cycle. For now, the focus remains on whether continued accumulation and market liquidity can provide enough support for Bitcoin to overcome the $88,000-$90,000 supply zone.