Bitcoin's $127K Quest: Whales Fuel the Rally as Supply Dries Up
- Keyword Financial
- Jul 14
- 4 min read
Introduction
Bitcoin is approaching a significant resistance level near $127,000, driven by strong bullish momentum and notable on-chain signals. The cryptocurrency recently traded around $122,400, nearing the upper boundary of the MVRV Pricing Bands, a metric often associated with market tops. Despite this, investor optimism remains high, as indicated by the growing gap between the current price and the realized price. However, traders are advised to be cautious, as such overheated zones can sometimes precede market corrections even during bull runs.
A key factor supporting Bitcoin’s upward movement is the intensified accumulation by large holders, or “whales.” Whale inflows surged by 195% over the past week, and more than 547% over the last 90 days, suggesting strategic buying during market dips and periods of consolidation. At the same time, exchange outflows have increased, with over 2,800 BTC leaving centralized platforms, indicating that investors are choosing to hold rather than sell. This trend reduces the available supply for trading, which can further support price increases and limit downside risk.
Additionally, selling pressure from Bitcoin miners has decreased, as shown by a drop in the Puell Multiple, a metric that tracks miner revenue relative to historical averages. With less incentive for miners to sell, there is less overhead resistance on the price. The NVT Golden Cross, which compares network value to transaction volume, has also risen, suggesting that the recent price gains are backed by real network activity rather than speculation. If these trends continue—whale accumulation, reduced miner selling, and sustained exchange outflows—Bitcoin could break through the $127,000 mark, though investors should remain mindful of potential corrections as the market approaches historically overvalued zones.
