In the last 30 days, Bitcoin whales have sold about 147,000 BTC. This is a 2.7% reduction in whale holdings, worth about $16.5 billion. According to analysts, further selling of these long-term holders (LTH) may put some negative pressure on Bitcoin in the next few weeks.
Bitcoin whales started selling when the price of BTC reached new all-time highs in August, exceeding the level of 124,500. This is the first time in this cycle that the total whale holdings are decreasing at the swift pace observed by Julio Moreno, who is the head of research at CryptoQuant.
Should the trend proceed, the sell-side pressure caused by these large investors' coin transfers can become sustained. Also, the latest data released by CryptoQuant analyst Darkfost indicated that the long-term holders continue to withdraw large amounts of Bitcoin, which might place even greater strain on the market.
Even though whales are selling their Bitcoin in large quantities, institutional traders are now on a massive accumulation of Bitcoin. Other firms, like Japan’s Metaplanet, have recently added more than 5,400 BTC, and Strategy, the company founded by Michael Saylor, now owns almost 640,000 BTC. These company acquisitions are helpful in offering a counter to the sell-off of individual whales.
In addition, the flow of Bitcoin into exchange-traded funds (ETFs) and corporate treasuries assists in establishing a structural floor for the price of Bitcoin. Cryptocurrency investment organization River pointed out that institutional purchases are surpassing ETF inflows, which has led to a consistent purchase of the cryptocurrency even as large individual holders liquidate their positions. This intense build-up implies that whale selling can exert short-term pressure on the price of Bitcoin, but the greater institutional demand can favor the market in the long term.
Also Read: Crypto Prices Today: Bitcoin Price Drops Below $112,500, XRP at $2.84, ADA at $0.80
The recent changes in Bitcoin price has shown some technical signals of the possibility of bearish movement. BTC has validated a bear flag pattern after a decline to below $116,000, indicating that further decline would be experienced when the support line is violated.
Analysts are monitoring key support areas from $110,000 to $112,000. Should Bitcoin fall below this range, the next level would be $100,000, which is 11% below its current price.
The relative strength index (RSI), which fell to 44 last week (after being 61 the week before), also confirms the idea of weakening bullish momentum. There is a lack of strong rebound, especially with regard to volume, as evidenced by Bitcoin showing a lack of direction on the shorter timeframes, including the 1-hour and 4-hour charts. Traders await a breakout of above 113,500 to indicate a potential recovery, and until that happens, the markets are cautious.