Bitcoin Whales are Still Skeptical
Bitcoin Whales are Still Skeptical: What it Means for BTC Price
Since the price of bitcoin reached an all-time high of $69,000 last year, Bitcoin whales have maintained an unsettlingly quiet posture.
After reaching a 6-week high of $21,085, the price of bitcoin (BTC) has since fallen down to the $20,470 mark, retracing 1.44% during the past 24 hours.
Whale movement can be useful to determine where price movement can go next because anxiety is still prevalent and there has been a lot of profit-taking at the $21,000 price point.
Bitcoin whales still in a dilemma
- Whale addresses are frequently crucial to changes in long-term price trends. Large institutional holders and “whale” addresses dumped their Bitcoin holdings over the most of last year.
- Up to the end of 2021, whale entities accumulated quite a bit before taking a profit in late October, just before the ultimate all-time high in early November.
- However, recent data from the whale transaction count, which shows no significant surge, indicates that this cohort has showed little to no interest or activity in the market.
- The percentage of 10,000 to 100,000 coins that experienced an increase in their holding from 11.2% at the beginning of October to 12.13% at press time was indicative of a favourable trend.
- The situation was essentially reversed when 100,000–1,000,000 coins saw a decrease in their ownership from 4.34% to 3.56%. Overall, whales continued to show scepticism in Bitcoin’s price movement while it was still experiencing a greater fall.
How does BTC price look post profit-taking?
- Age bands for BTC provide useful info on the state of the market. According to the age ranges, supply from one day to one week is building up. Before Bitcoin’s current recovery, the supply of less than one day (blue) increased, but it is now decreasing.
- According to data from CryptoQuant, the supply is flowing sideways from one week to one month (purple) over a longer time. This supply was kept and moved to the one-month to three-month supply (red box).
- On the other hand, the supply for the 1-month to 3-month (green) time frame had been trending upward until lately. As a result, it’s unlikely that the advance will continue in the short term as extra buying enthusiasm decreases.
- Despite the recent advances, BTC’s price remained in a more significant downturn. Profit-taking continued despite the retail side buying being sparked by short-term gains. Even among experienced HODLers, there appeared to be a greater desire to grab profits near the $21,085 level, according to a rise in SOPA.
- Without significant whale activity and little price increases for BTC, profit-taking actions could remain the norm.
- Between the price range of $19,000 and $20,700, where more than four million addresses bought about 2.3 million BTC. Bitcoin has developed a substantial demand zone. The price of BTC would encounter significant resistance between the $20,850 and, subsequently the $21,167 levels shortly.
Also Read: Gaining Expertise in Cryptocurrencies