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The Bitcoin whale supply has hit a 6-year low – How will the price respond?
Bitcoin has had a strong bullish week, approaching the important milestone of 110,000 dollars. However, maintaining this upward momentum may face many challenges – just like over the past two months. This is because whales seem to be taking profit, impacting the ability to hold the current price level of BTC.
Bitcoin whales sell off aggressively
Whale activity has become noteworthy in recent days. Addresses holding between 1,000 and 10,000 BTC are selling a significant portion of their assets.
In just the past week, these whale wallets have sold over 40,000 BTC, worth more than 4.3 billion dollars. This selling pressure may be a reaction to the recent bullish trend of Bitcoin, as large investors are concerned about the sustainability of the upward trend.
The whale selling such a large volume can negatively impact the price of Bitcoin, as it creates immediate strong selling pressure. This could hinder the ability to maintain Bitcoin's bullish momentum in the short term.
Liveliness increasing often indicates that long-term holders (LTH) are moving assets instead of continuing to hodl. This change implies that LTH are choosing to sell rather than accumulate more, reflecting a similar trend as whales.
With a significant influence on the Bitcoin market, the actions of the LTH group can strongly impact price volatility. If they continue to sell, this could lead to increased volatility and limit the price recovery potential in the near future.
In the past 24 hours, the price of Bitcoin increased by 1%, reaching $108,257 at the time of writing. Currently, this coin is trying to establish the $108,000 level as a strong support zone.
However, continuous selling pressure from whales and LTH changing behavior puts Bitcoin at risk of sliding back below this level.
If Bitcoin cannot hold 108,000 dollars as support, the next support zone may be around 105,622 dollars, and if the downtrend continues, the price will slide down to about 102,734 dollars.
The selling activity of whales and LTH could be the main driving force causing prices to drop if market sentiment turns more negative.
A strong breakout past this level will pave the way for Bitcoin to reach the $110,000 mark, thereby negating the current bearish scenario and maintaining the growth momentum.
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