Bitcoin is showing signs of a potential recovery, emerging from a validated bullish pattern. The crypto has managed to regain momentum, with whale investors playing a crucial role in its price surge. 

As larger holders accumulate more BTC, Bitcoin is inching closer to critical resistance levels.

Bitcoin Investors Are Uncertain

Whale holders have been actively accumulating Bitcoin during the recent mid-sized drop and volatile market conditions. Unlike smaller retail traders, who have been liquidating their holdings, large investors are taking advantage of the price swings to expand their portfolios. This trend highlights a growing divide between seasoned investors and newcomers.

February data reveals a notable shift in wallet distribution. The number of wallets holding 100+ BTC has grown by 135, while smaller wallets holding less than 100 BTC have declined by 138,680. This shift indicates that whale investors are reinforcing their positions while smaller traders exit the market.

Analyzing Bitcoin’s macro momentum, the Cost Basis Distribution shows that a key support range lies between $97,500 and $99,999. Last month’s data confirms that nearly 200,000 BTC were accumulated at these levels, reinforcing price stability.

Additionally, investors with a cost basis above $99,000 have acquired over 150,000 BTC. This accumulation further strengthens the crucial range between $97,500 and $99,999, serving as a foundation for Bitcoin’s next potential move upwards.

BTC Price Prediction: Recovering for Breakout

Bitcoin’s price is on track to validate an ascending wedge pattern once it reaches $106,100, requiring a 7% increase. However, for this to happen, investors must resist the urge to sell prematurely and maintain upward momentum.

Given the accumulation trends and whale activity, Bitcoin could first retest the $100,000 resistance. If this level is successfully breached, BTC is likely to continue its uptrend, break out of the ascending wedge, and surge toward $106,100 and beyond.

On the downside, failure to break $100,000 could lead to a decline, with Bitcoin potentially dropping to $95,668 or lower. This scenario would invalidate the bullish thesis and extend market losses, disrupting the current recovery trend.

Government watchdog group Public Citizen has filed a formal complaint with the Department of Justice and the Office of Government Ethics regarding President Donald Trump’s launch of meme coins.

The group is urging an investigation into whether Trump violated federal laws by promoting and soliciting money for his Official Trump meme coin.

The complaint, submitted on Wednesday, cites social media posts from Trump on both X (formerly Twitter) and Truth Social. According to the submission, the US president used these platforms to promote the TRUMP coin and encouraged supporters to send money.

Further, Public Citizen alleges these posts were re-shared on January 20 and January 21, shortly after Trump was inaugurated. The group argues that this constitutes a potential violation of federal laws prohibiting the president from soliciting personal gifts.

“A president soliciting money from the general public for his personal enrichment would be a reprehensible abuse of the presidency. The Department of Justice and Office of Government Ethics owe it to the American people to thoroughly investigate whether Donald Trump’s solicitation is in violation of the law, and, if it is, take appropriate action to stop it,” an excerpt in the report read, citing Bartlett Naylor, a financial services advocate at Public Citizen.

The complaint also calls out Trump’s official website for the meme coin for stating that contributions to the project are purely in exchange for a digital receipt. According to the advocacy group, this suggests that the money received is not tied to any tangible product or service.

Public citizens are concerned that the funds collected may directly benefit Trump, potentially breaching federal ethics laws. Additionally, the complaint raises constitutional concerns.

Notably, the US Constitution forbids any president from accepting money or items of value from foreign sources. Given crypto transactions’ decentralized and anonymous nature, it isn’t easy to ascertain whether foreign state actors are purchasing Trump’s meme coin.

According to the complaint, this creates possible national security and foreign policy risks.

Previous Calls for Investigation Into TRUMP Meme Coin

The latest complaint follows mounting scrutiny over Trump-affiliated cryptocurrencies. Two weeks ago, Senator Elizabeth Warren called for federal scrutiny of the TRUMP and MELANIA meme coins. As BeInCrypto reported, she warned of potential regulatory and ethical violations.

Around the same time, Democrats demanded an ethics probe into Trump’s involvement in meme coin-related financial dealings. They cited concerns about his association with World Liberty Financial.

“The expanding scope of President Trump—and by extension The Trump Organization’s—financial entanglements and quid pro quo promises are troubling,” wrote US Representative Gerald Connolly.

Despite these growing concerns, Trump recently denied knowledge of the meme coin. However, the denial came amid significant market fluctuations in the coin’s value, adding further speculation about his level of involvement.

Nevertheless, public interest in the TRUMP meme coin has surged. A recent survey found that over 40% of TRUMP meme coin holders are first-time investors, illustrating the coin’s strong appeal among inexperienced traders. At the same time, World Liberty Financial (WLFI), Trump’s DeFi venture, has experienced a dramatic rise in token sales following the launch of the TRUMP meme coin.

Further analysis of blockchain transactions has also revealed concerning centralization issues. A recent Chainalysis report found that 94% of TRUMP and MELANIA tokens are held by just 40 wallets. This raises questions about potential price manipulation and insider advantages.

Beyond ethical and regulatory concerns, Trump’s meme coin launch has also prompted discussions about its legal and tax implications. Cryptocurrency experts warn that such a venture could carry significant tax liabilities for Trump and investors.

Moreover, if the investigation finds that Trump’s meme coin solicitation violates federal law, the Public Citizen’s complaint suggests immediate action. These may include terminating the sale, refunding the money, and implementing additional penalties.

The Department of Justice and the Office of Government Ethics have yet to respond to the filing.

Solana-based meme coin dogwifhat (WIF) has experienced a sharp downturn over the past week. It has shed 33% of its value during that period and currently trades at a February 2024 low. 

On-chain and technical indicators confirm the weakening demand for the meme coin, suggesting its decline may continue in the short term.

WIF’s Declining Demand Signals Bearish Outlook

An assessment of the WIF/USD one-day chart reveals that the token’s On-Balance-Volume (OBV), a key indicator of buying and selling pressure, has continued to drop, reflecting diminishing demand for the meme coin. At press time, it is at -398.94 million, falling by 285% in just seven days. 

A falling OBV like this indicates that selling pressure outweighs buying pressure. It means more traders are offloading the asset than accumulating it.

When an asset’s OBV falls while its price declines, it reinforces bearish sentiment and the likelihood of further losses. This suggests weakening demand for WIF and signals a potential downtrend or continuation of its existing price drop.

Additionally, WIF’s open interest reinforces this bearish outlook. It has steadily declined since the start of February, plunging by 42%.

Open Interest refers to the total number of outstanding futures or options contracts that have not been settled. When it drops alongside an asset’s price decline, traders are closing their positions rather than opening new ones. This reflects weakening market participation and can signal that the downtrend may continue unless new interest emerges.

WIF Price Prediction: More Declines Ahead?

Readings from WIF’s Awesome Oscillator (AO) confirm the waning demand for the altcoin. This indicator posts red downward-facing histogram bars as of this writing, reflecting the high selling pressure. Its value is -0.60.

The Awesome Oscillator indicator measures market momentum by comparing the recent 5-period moving average to the longer 34-period moving average. When it posts red downward-facing histogram bars, it indicates weakening bullish momentum or strengthening bearish pressure, suggesting a potential continuation of a downtrend.

If WIF’s downtrend continues, its price could plunge to $0.55, representing a 30% decline from its current value.

However, if the meme coin sees a resurgence in demand, it could propel its price past the resistance at $0.92 and toward $1.89.