“Whales Are Diving Deeper: Will Bitcoin Sink or Swim?”
- Bitcoin has taken a 12.90% nosedive over the past month.
- The aggregated amount of Bitcoin held by whales has hit a 6-year low.
As the great Bitcoin [BTC] conundrum continues to confound, it appears that even the whales have lost their appetite. According to recent data from IntoTheBlock, the supply of Bitcoin held by these behemoths has been dwindling, a trend that has not been seen in six long years.
One cannot help but wonder if the whales are indeed abandoning ship, or merely rearranging the deck chairs. The aggregate amount of BTC held by large holders has plummeted to its lowest levels since 2019, a development that has sent shockwaves through the crypto community.
When supply held by whales hits such lows, it suggests a significant shift in market dynamics. This implies that whales are actively in the market, selling their wares like so many desperate merchants at a bazaar. But what does it mean for the little guy?
With whale selling, it could imply institutions are selling for operational cost as prices decline, or large holders, are entirely closing their positions waiting for other buying opportunities. Or perhaps, just perhaps, they are redistributing to retail investors, which might result in more decentralization, reducing whale-induced market trends.
But fear not, dear reader, for the market demand remains relatively high. As such, the market is experiencing more outflows than inflows. It’s a bit like a game of musical chairs, where the whales are selling, but the rest of the market still has a relatively high demand for the asset, which is critical for price stability.
BTC’s Next Levels
With whales turning to sell, the question is, what’s next for BTC price movement? For starters, although whale supply has declined, Bitcoin is not experiencing high selling pressure. It’s a bit like a cat playing with a ball of yarn, where the market is experiencing more outflows than inflows, but the yarn remains tantalizingly out of reach.
We can see this as the fund flow ratio to exchanges has also been declining over the past week. It’s a bit like a seesaw, where the fund flow ratio declines, suggesting that there are fewer exchange deposits, thus current holders are not planning to sell. This signals long-term holding behavior as investors continue to accumulate their BTC.
Therefore, since whale supply is declining meaning they are selling while other investors continue to hold, it suggests that markets will continue to consolidate as buyers absorb selling pressure without driving prices up. It’s a bit like a game of poker, where the players are waiting for the perfect moment to strike, but for now, they’re just holding their breath.
Consolidation here is most probable, as buyers are not strong enough to absorb the selling pressure and still push prices to higher resistance. It’s a bit like a tightrope walker, where the market is balancing precariously between buying and selling, but for now, it’s just holding steady.
If consolidation is positioned to continue, BTC must consolidate above $84,640 as per Alphractal. If the price consolidates above this level, it is likely to form a local bottom before pushing to new all-time highs in the near future. But if Bitcoin stays below $84K for several days, the next target on the CVDD Channel is $64,700, which coincides with the April 2021 all-time high. It’s a bit like a game of musical chairs, where the market is waiting for the perfect moment to strike, but for now, it’s just waiting patiently.
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2025-03-10 03:42