Bitcoin Whales Offload 30,000 BTC, Price Faces Increased Selling Pressure as Whales Offload

Bitcoin price faces increased selling pressure as whales offload over 30,000 BTC in the past 10 days. The price is consolidating between $94,000 and

Bitcoin price is showing signs of weakness as large BTC holders, known as whales, are offloading their coins rapidly. According to data from Santiment, over the past 10 days, Bitcoin wallets in the range of 10,000 to 100,000 BTC have sold a total of over 30,000 BTC.

This large sell-off activity from the whales is putting pressure on the supply side of the market, which could be contributing to Bitcoin’s short term volatility.

One market analyst, who goes by the handle Ali, highlighted a chart that shows the shifting whale holdings, which could be impacting the market sentiment. According to the analyst, when the whales are decreasing their holdings, it tends to lead to higher trader volatility.

Bitcoin price is currently consolidating in a range between $94,000 and $100,000, and analysts are keeping an eye on how strong the support and resistance levels hold.

However, according to investigations by another popular market analyst @best_analysts, institutional demand is starting to slow down, which could affect the ability of Bitcoin price to sustain above crucial levels.

As per the analyst chart, Bitcoin’s support level is at $92,800, and the resistance is within the region of $98,400 and $100,000. If BTC price fails to sustain above this level, the next move could be towards $90,000 or further down to $86,000. But, if a breakout occurs above the resistance, then the bearish trend will no longer be valid and take Bitcoin to new highs.

Bitcoin Open Interest Declines as Traders Reduce Leverage

The Open Interest (OI) data provides an insight into the traders’ positioning and the market sentiment. Over the last 24 hours, the total BTC OI has decreased by -4.94%, and it now stands at $29.1 billion. This decline in OI suggests that traders are closing positions, reducing leverage, and preparing for potential price movement.

A decreasing OI typically implies that there is less speculative activity, therefore, Bitcoin is likely to be less volatile unless there is a new event. For this reason, should leveraged traders continue to exit that market, the market might soon reach a point where it cannot be sold anymore then either enter a new bullish or bearish phase.

Bitcoin Active Addresses and Network Activity

Bitcoin’s active addresses continue to swing between 650 000 and 1.3 million users over the past three years. The most recent data from CryptoQuant shows around 964,250 active addresses, reflecting mid-range activity compared to past trends.

If high active addresses rise in parallel with the price of Bitcoin, then it points to new people entering the market, more particularly the retail investor, and that will be good for the price. However, if the activity of addresses does not increase, the market can stabilize and the investors analyze the trends in the network to make trading.

Technical Indicators Suggest Possible Rebound

On the 4-hour chart, there are some signs suggesting that the price of Bitcoin is preparing to rally once more. The price has just escaped from falling wedge bullish patterns. Thus, if Bitcoin holds above $97,500, it may rally to $100,000– $105,000 in the following trading sessions.

Looking at MACD indicator momentum is waning. The Relative Strength Index is currently 48.01 slightly below the mid-line.

The key upside targets are still $97.5K, $100K, and $105K as per the table below. Nevertheless, the volume is attracting traders’ attention, trying to determine whether it can support the breakout and the levels of resistance. If Bitcoin price sustains above $95,000 – $97,500, then the next move will be in favor of the bulls. On the other hand, if selling pressure augments more, then it may come down again to $90,000 or even lower in the short run.

In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.