Bitcoin Price Surge Amid US Reserve Optimism

• BTC topped $107K amid increased optimism of a likely US national reserve.
• Kraken whales placed sell orders at $150K-$160K price targets.

On December 16th, Bitcoin reached an impressive peak of $107K, driven by growing expectations that the US will establish a national Bitcoin reserve.

This optimism has raised targets, with some anticipating a rally towards $110K. However, Kraken whales have set their sights on sell orders in the range of $150K-$160K.

According to BTC on-chain analyst Bitcoindata21, sell orders by Kraken whales above $150K reflect early 2024 trends that previously stalled momentum below $80K. He noted:
> “Kraken whales are starting to tell us where bitcoin price is going to slow down in the coming months. Some sell orders above, that could be similar to those that stopped price appreciation earlier this year.”

BTC’s Growing Demand

Bitcoin’s recent all-time high above $107K has been supported by robust demand in the spot market.

Julio Moreno, head of research at CryptoQuant, mentioned that the sell pressure from major players has decreased as demand rises. He stated:
> “Bitcoin OTC desks are seeing their largest monthly balance decline so far this year, -25k Bitcoin, as demand continues to grow. Additionally, their balance has fallen by 40k Bitcoin since November 20.”

The decline in the Over the Counter (OTC) Desk Balance indicates easing sell pressure from large investors not utilizing centralized exchanges, which is a positive signal for BTC’s potential upward movement. Increased investor appetite could lead Bitcoin toward targets of $120K-$150K.

Interestingly, recent price movements aligned closely with the changing odds of the US creating a Bitcoin reserve, with probabilities rising from 25% to 40% on Monday, matching BTC’s climb from $94K to $107K during the same timeframe.

As of the latest update, the odds fell slightly to 38% as BTC adjusted to $106.5K, highlighting the US reserve’s potential as a key catalyst for anticipated price targets.

Despite this positive outlook, the risk of a pullback remains. Elevated profitability measured by aSOPR suggests historical trends indicate BTC often peaks when this metric hits its first or second band as profitable holders begin to cash out. Currently, it looks to be nearing the first band, indicating pullback concerns are still present.