Bitcoin Whale Supply Drops to 6-Year Low – How Will BTC Price React?

Bitcoin has been trending upward this week, with the price approaching the important milestone of 110,000 USD.

However, maintaining this upward momentum may be challenging, as has been the case over the past two months. "Whales" seem to be taking profits, which could affect Bitcoin's ability to sustain its increase.

Bitcoin Whales Sell Heavily

Whale activity has been notable in recent days, with addresses holding between 1,000 BTC and 10,000 BTC selling a large portion of their holdings.

In just the past week, these whales have sold over 40,000 BTC, valued at more than 4.3 billion USD. This selling pressure is likely a reaction to Bitcoin's recent price increase, with these large holders uncertain about the sustainability of the price surge.

This type of selling from whales could be detrimental to Bitcoin's price, as it creates downward pressure when large volumes are sold simultaneously. The impact of whale selling could prevent Bitcoin from maintaining its upward momentum.

In addition to whale selling, the Liveliness index, which tracks Bitcoin transaction frequency, has increased significantly this week.

The increase in Liveliness often signals that long-term holders (LTHs) are moving their assets instead of holding. This change suggests that LTHs are choosing to sell rather than accumulate, reflecting whale actions.

LTHs, with their significant market influence, are likely to strongly impact price volatility. If they continue selling, this could lead to further volatility and potentially limit Bitcoin's price recovery.

Can BTC Price Exceed 110,000 USD?

Bitcoin price has increased 7% in the past 24 hours, reaching 108,145 USD at the time of writing. Currently, the cryptocurrency is attempting to establish a solid support level at 108,000 USD.

However, continuous selling from whales and changes in LTH behavior make it easy to fall below this level.

If Bitcoin cannot maintain the 108,000 USD support level, the next support could be around 105,622 USD, with a further decline potentially pushing the price down to 102,734 USD.

The impact of whale selling and LTH behavior could drive this decline if market sentiment becomes more negative.

On the other hand, if institutional demand continues to increase and overcome selling pressure from whales and LTHs, Bitcoin could break through the resistance level of 109,476 USD.

A strong push past this level would pave the way for Bitcoin to reach 110,000 USD, which would invalidate the current bearish argument and continue the upward trend.