The real reason Bitcoin reached a historic high: Whales "took over" the dominant position, smart money capitalized on the retail investors' exit!

Bitcoin (BTC) set a new all-time high of over $112,000 this week, while Ethereum held above the key support zone. On-chain data provided by Santiment, Altcoin Daily, and crypto analyst Ali clearly illustrates what is happening beneath the surface and the reasons why the market may be preparing for more pumps.

After retail investors exit, whales and smart money take the opportunity to enter the market

The rise of Bitcoin to $112,040 did not happen out of thin air. According to Santiment, the price of Bitcoin began to rise after experiencing several weeks of sluggishness and a significant decline in the activity of small wallets.

Basically, small retail investors either sell off or wait and see, and this is usually when the big players (whales) start to buy in. The Bitcoin chart shows four different points of declining wallet activity.

In such cases, the price of Bitcoin tends to pump shortly thereafter. This pattern has repeated several times: retail investors exit, and the price of Bitcoin rises.

Santiment even pointed out in a tweet that traders are exiting "out of boredom or disbelief," while smart investors (smart money) are taking advantage of this.

(Source: Santiment)

BTC breaks resistance, altcoins seize the breakthrough

A chart shared by Altcoin Daily shows that Bitcoin surged to $111,881 with just one large bullish candle. Prior to this, the BTC price had been hovering between $107,400 and $109,800.

This breakthrough is clean and sharp, with great explosive power, possibly driven by whale buying or short covering. The previous range has now become a key support area.

If the BTC price re-tests and maintains above $109,800, bulls may gain more room to further push prices higher. This is a familiar pattern: calm range fluctuations, sudden breakouts, and then strength testing during the upward process.

(Source: X, Altcoin Daily)

Ethereum receives strong support, with little resistance ahead

Analyst Ali stated that while Bitcoin is stealing the spotlight, the price of Ether quietly holds above $2,530. Data from Ali's charts shows that Ethereum's main support level is between $2,378 and $2,454, with over 3 million addresses purchasing nearly 70 million ETH in that range.

The number of buyers is so large that it is unlikely to sell in the short term. What's more interesting is how the market performs above the current price. The resistance is minimal.

There are some sellers between $2,607 and $2,884, but if momentum strengthens, the scale of these sellers seems insufficient to stop the rise of Ether. Furthermore, over 84% of Ether holders are in profit, so there is not much selling pressure.

(Source: X, Ali Charts)

Retail investors exit, whales take control

The story of BTC and ETH is very clear: when retail traders feel anxious or bored, long-term holders and whales take over.

This shift has driven a breakthrough for Bitcoin and helped Ethereum maintain stability. If the Bitcoin price can stay above $109,800 while Ethereum continues to hold the $2,380 area, then the next round of pump may be just around the corner, and the current charts and wallet data seem to confirm this.