Key Points
- The number of Bitcoin addresses holding 1k-10k BTC has decreased over the past three months.
- Despite this, market indicators suggest a continued rise in Bitcoin’s price.
Over the past week, Bitcoin (BTC) bulls have maintained their market dominance. However, as BTC’s price increased, large-scale holders, or “whales,” decided to significantly reduce their holdings.
Bitcoin Whales Sell Off
According to CoinMarketCap, BTC’s price has risen by more than 6% over the past week, including a 4% increase in the last 24 hours alone. At the time of writing, BTC was trading at $61,298.02, with a market capitalization exceeding $1.2 trillion.
Despite the price increase, large-scale investors in the cryptocurrency market have been selling their BTC holdings. Data analysis from Santiment revealed a significant decrease in the number of BTC addresses holding 1k-10k BTC in the last three months.
A prominent crypto analyst, Ali, recently tweeted that some of the biggest Bitcoin whales have sold over 10,000 BTC in the past week, valued at approximately $600 million. This suggests that these whales may lack confidence in Bitcoin and anticipate a price drop in the near future.
Impact on BTC’s Price
Despite the selling activity of whales, the overall market sentiment remains bullish. The exchange reserve for Bitcoin has reached its lowest level since 2018, indicating a rising buying pressure.
Analysis of CryptoQuant’s data reveals several bullish metrics. For instance, BTC’s aSORP is green, suggesting that more investors are selling at a loss. This could indicate a market bottom during a bear market.
Also, the Binary CDD shows that the movement of long-term holders in the last seven days was below average. Both of these indicators suggest a possible continuation of BTC’s upward price movement.
Additionally, data from Glassnode shows a drop in BTC’s NVT ratio. Typically, a decrease in this metric suggests that an asset is undervalued, hinting at a potential price increase.
Upon examining Bitcoin’s daily chart, the Relative Strength Index (RSI) shows upward momentum. Similarly, the Money Flow Index (MFI) indicates a potential price increase. However, the Chaikin Money Flow (CMF) has slightly decreased, suggesting a bearish trend.
