It’s an Apocalyptic Environment in Bitcoin! Why Are Whales Constantly Selling Bitcoin?
According to CryptoQuant’s data, the holding and spending behaviors of Bitcoin (BTC) whales are locked on opposite sides. According to the comprehensive crypto trading data provider, the whales were actively engaged in selling.
Interestingly, the action dates back to June 2022 and leads to the disposal of 367,000 BTC. The structure of this position often has a typical impact on the potential asset decline or increase. Given this situation, BTC may be difficult to support, despite the fact that it has risen above $ 17,000.
Whales Spend BTC While Others Prepare
While there have been cases where whales have sold and accumulated strongly, this current scenario was different. CryptoQuant’s familiarity with the situation showed that they were not accumulating BTC, which led to a spending spree.
This situation is usually characterized by a price drop in its continuation. When all this is examined, BTC may have faced the possibility of further decline. According to the Bitcoin Spent Output Value Bands, the signs stood out.
The fact that prices are so high may mean that whales make up a large part of those who move their coins. However, the periods of intense sales did not come as a surprise, as shown in the graph above.
Although the market has left the FTX collapse and the LUNA collapse behind, the miner capitulation is still underway. Since it usually goes in sync with the whale action, a rally may not be expected in the short term. In addition, Santiment reported that Bitcoin has reached a four-year low per exchange supply. At the time of writing, the supply on the exchanges was 6,418.
This extremely low value indicated that there may be a reduction in short-term selling pressure. In addition, data from on-chain platforms revealed that the supply of Tether (USDT) October increased to 36,773. If this trend continues, it may mean that investors are preparing to buy and BTC may not fall below its current low levels.
However, the supply-adjusted destroyed cryptocurrency years (CYD) had interesting indicators relative to the long-term BTC outlook. According to Glassnode, the metric had risen to a minimum of 173.88 at the time of writing. At this stage, it may mean that the accumulation of Bitcoin may increase and move towards peak values.
As mentioned earlier, since the whales are selling, the action can also be a case of retail investors performing. Compared to the supply of USDT, this possibility may be valid.
He May Not Be Here For Very Long
Despite the fact that BTC recorded an increase of 2.36% in the last 24 hours, the indicators obtained from the chart may indicate that the decline has not passed. Looking forward, Bitcoin may struggle in its attempt to stay above $17,000, as shown by the exponential moving average (EMA).
At the time of this writing, the 50 EMA (yellow) was approaching the 20 EMA (blue). This position may mean that the recent increase in BTC is not a confirmation of support, and a rejection may be imminent. However, the 200 EMA (purple), which has again risen above both 20 and 50, may mean that the possible decline may not last very long.
Disclaimer: The information contained in this article does not contain investment advice at all. Investors should know that crypto currencies carry risks due to their high volatility and should carry out their transactions in accordance with their own research.