As a seasoned crypto investor with over a decade of experience under my belt, I’ve seen enough market cycles to know that caution is always the better part of valor. The recent behavior of Bitcoin whales, standing on the sidelines as BTC teases just below $100,000, has me feeling a bit like a spectator at a high-stakes poker game – everyone’s watching, but no one seems to be making a move.
Large-scale Bitcoin investors (often referred to as “whales”) seem to be remaining cautious with their assets, as Bitcoin fluctuates around the $100,000 mark, according to a cryptocurrency expert’s analysis. In simpler terms, these big players appear to be watching and waiting on the sidelines while Bitcoin experiences small increases and decreases near this significant price point.
Though there’s no immediate indication of selling right now, the increasing amount of Bitcoin being deposited into exchanges could signal a potential threat of future sell-offs, according to Onat Tütüncüler in his November 2 analysis. Keeping a close eye on these trends is important to predict any potential market repercussions.
Bitcoin whales sidelined
It was observed by Tütüncüler that a substantial amount of Bitcoin has been flowing into cryptocurrency exchanges since Donald Trump’s election as president on November 5th. Usually, large transfers to exchanges indicate an upcoming sell-off for market participants; however, in this case, it appears that the “whales” are adopting a “let’s see” stance instead of making immediate moves.
In simpler terms, the expert mentioned that the Adjusted Spent Output Profit Ratio (aSOPR), a metric that typically signals a shift in market direction due to profits being consumed by trade volume, hasn’t suggested any substantial profit selling yet.
Generally speaking, during bull runs, investors often prefer to keep their Bitcoin for as long as they anticipate short-term growth. Then, they might switch to other cryptocurrencies. However, the decline in Bitcoin’s dominance by 5.54% since November 28, as indicated by TradingView data, could be a sign that this shift towards other digital assets is happening.
At the time of publication, Bitcoin (BTC) is trading at $95,809, according to CoinMarketCap.
At the moment of this writing, the average price that long-term Bitcoin investors paid for their holdings amounts to $24,994, demonstrating that these investors have accrued a substantial profit of approximately 3,800%. This is based on individuals who have held Bitcoin for over 155 days.
Traders skeptical of $100,000 by the end of 2024
Market participants anticipate that Bitcoin will maintain its existing value, yet they express reservations about it surpassing $100,000 by December 2024.
In a December 3 post, the anonymous cryptocurrency trader known as Rekt Capital expressed that “Bitcoin is repeatedly testing a pattern of lower highs as potential support levels.
They added that Bitcoin is “producing longer and longer downside wicks.”
“As long as this continues, BTC should be able to reclaim the ~$96400 support,” they said.
On November 22nd, Bitcoin nearly touched its record peak of $100,000, stopping at a value of $99,800 instead.
Nonetheless, Szymon Sypniewicz, the co-founder and CEO of Ramp Network, expresses doubts that the value will surpass $100,000 by the end of 2024. In a conversation with CryptoMoon, he shared this viewpoint.
It’s likely that Bitcoin will eventually reach $110,000, but it remains unclear if this will occur by the end of the year. The market may go through fluctuations before reaching this milestone.
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2024-12-04 07:40