113,950 BTC Added by Mid-Sized Wallets as Bitcoin Rally Faces Key Test

Wallets holding between 100 and 1,000 BTC have added 113,950 Bitcoin since July 15, increasing their combined holdings by 2.22% to 5.24 million BTC, according to Santiment. The accumulation comes as Bitcoin briefly reached $87,000 earlier this week before pulling back and holding near $84,000.

The continued buying raises the question of whether mid-sized holders are creating a stronger foundation for a breakout or whether the latest recovery is primarily being fueled by a short squeeze that could weaken once leveraged positions are reduced.

Bernardo Brites, co-founder of Trace Finance, said the rapid recovery was partly driven by short covering. He also highlighted the importance of determining where the fresh capital entering the market is coming from before treating the move as evidence of stronger risk appetite.

That distinction becomes increasingly relevant as Bitcoin approaches its next resistance zone. The current setup could reflect a combination of technical buying and macro positioning rather than a purely technical advance.

Santiment has tracked the 100-to-1,000-BTC wallet cohort for five years. Its accumulation patterns have often corresponded with broader Bitcoin market trends, with periods of heavy buying frequently preceding or accompanying stronger price gains. The latest figures show these wallets continued to accumulate during the recovery, suggesting that demand is not coming solely from retail investors.

$88,000-$90,000 Becomes the Next Bitcoin Test

Bitcoin has also strengthened from a technical perspective. The cryptocurrency reclaimed its 365-day moving average near $80,500, a level it last moved above in March 2023. That previous recovery was followed by a larger price advance. Bitcoin has also moved above the $76,000-$81,000 supply zone that had limited its upside for several weeks.

The $88,000-$90,000 range is important because a large amount of Bitcoin supply is concentrated around those prices. As Bitcoin approaches the zone, holders who bought in that area could increase selling activity, making $90,000 a key test for the current rally.

ETF flows and stablecoin liquidity could offer further clues about the strength of demand. Continued ETF inflows combined with expanding stablecoin supply could provide additional support as Bitcoin approaches resistance. If ETF demand weakens while Bitcoin remains below $88,000, however, the market could become more vulnerable to a pullback as leveraged positions are unwound.

CryptoQuant founder Ki Young Ju has separately suggested that the current cycle may produce a 3-to-5x Bitcoin rally rather than the 10x advances seen during previous cycles. He has pointed to a more mature market and greater institutional participation as factors that could reduce extreme volatility.

That assessment does not determine whether Bitcoin will clear $90,000. Instead, it places the current resistance test within the broader market cycle, with attention now turning to whether continued accumulation and liquidity can support another leg higher.