Bitcoin’s Q1 performance in 2025 has been nothing short of impressive, with a 121% year-over-year increase in dormant Bitcoin supply. This surge, excluding any Mt. Gox-linked transfers, suggests a strategic repositioning by long-term holders, possibly in response to macro uncertainty or renewed bullish conviction. The emergence of these dormant coins could indicate either exit planning or fresh accumulation, setting the stage for high-volatility phases as liquidity tightens.
The current market structure of Bitcoin is bolstered by broad profitability and rising whale activity. A staggering 84.44% of Bitcoin addresses are in profit, limiting sell pressure and instilling holder confidence. While Retail-sized Transactions under $1,000 declined, transfers in the $1M–$10M and over $10M range surged significantly. This shift towards larger players and away from smaller ones often precedes strong upward moves, setting the stage for potential expansion supported by deep-pocketed investors positioning for a major breakout.
BTC’s Liquidation Heatmap reveals a high-leverage cluster between $93,000 and $95,000, a crucial range for triggering forced closures that could amplify upward price action. While Bitcoin currently trades just below this level at $91,889.54, breaking through this resistance barrier could serve as a launchpad for explosive movement if bulls take control. The lack of similar liquidation pressure below the current price further strengthens the case for a bullish breakout, with upside momentum favoring an upward breakout.
Despite a minor dip in the last 24 hours, technical indicators for Bitcoin continue to support a bullish scenario. Bitcoin is hovering near the upper Bollinger Band at $93,549, a level often associated with breakout behavior when combined with volume. Additionally, the MACD indicator recently completed a bullish crossover, signaling building momentum. These patterns reflect growing confidence among market participants and suggest that Bitcoin could extend its gains by breaching the $93K resistance zone, with widening volatility bands hinting at an imminent expansion in price action.
Internal Exchange movements have also shown a subtle uptick of 2.24%, with 333.4K BTC moving within Internal Exchange Wallets. While not dramatic, these movements often precede major shifts in market structure, as exchanges reposition liquidity in anticipation of demand surges or volatility spikes. This increase in exchange activity aligns with other bullish signals, indicating that institutions and custodians are preparing for increased market activity and potentially positioning for volatility.
Overall, Bitcoin is poised to reclaim the $95,000 mark as dormant holders re-enter the market, large players engage in heavy transactions, and the technical environment remains bullish. With leverage clustered above and institutional behavior signaling preparation, the conditions are aligning for a breakout. If Bitcoin breaks through the $93K resistance level with conviction, the path towards $95K could be swift and forceful, setting the stage for continued upward momentum in the cryptocurrency market.
