Bitcoin witnessed a promising surge in its price last week, driven by bullish momentum. However, the scenario took a turn as the king of cryptocurrencies saw a reversal in its trend with the daily chart flashing red once again. Notably, a significant amount of Bitcoin was sold by a large holder just before the price dip.
Is There a Sell-Off Among Bitcoin Whales?
A recent tweet by Lookonchain disclosed a whale transaction where 500 BTC, valued at $30.07 million, was sold shortly before the price correction. This particular whale had engaged in three swing trades involving Bitcoin, registering profits only in the first trade while incurring losses in the subsequent two transactions.
Following the whale’s considerable sell-off, CryptoCrypto analyzed other datasets to gauge the collective selling pressure from whales. Glassnode’s data was scrutinized, indicating a decline in the number of addresses holding 10 or more BTC over the past week. Such a decrease signifies that significant entities in the crypto realm were offloading BTC, potentially contributing to the recent price drop.
Bitcoin saw a more than 2% decline within the last 24 hours, currently trading at $58,789.75. Additionally, findings from Hyblock Capital revealed a reduction in whale exposure in the market during the same timeframe.
Despite the implications of substantial whale activity, other factors played a role in the price adjustment. CryptoCrypto’s research also pointed out an increase in Bitcoin’s NVT ratio, commonly indicating overvaluation and often leading to corrective price movements.
Forecasting Bitcoin’s Future Moves
An examination of Bitcoin’s weekly chart was conducted by CryptoCrypto to anticipate potential outcomes if bearish pressure persists. The analysis suggested that a sustained downtrend could drive Bitcoin back to a support level around $53,000.
Further downside might see BTC slipping below this support, potentially targeting $43,000. Nonetheless, earlier reports by CryptoCrypto hinted at optimistic signs for Bitcoin’s price trajectory, with the NVM ratio exhibiting a decline.
If bullish sentiment prevails, Bitcoin could aim for resistance near $61,000 in the near term. A successful breakout above this level might open the path for BTC to test $68,000 in the upcoming weeks.