Bitcoin Whale Holdings at 6-Year Low… Will BTC Prices Be in Trouble?

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Bitcoin is showing an upward trend this week and is approaching the important level of $110,000.

However, maintaining this momentum has been challenging over the past two months. Whales realizing profits could impact Bitcoin's ability to sustain this upward trend.

Bitcoin Whale Mass Selling

Whale activity has been prominent in recent days. Addresses holding between 1,000 BTC and 10,000 BTC are selling substantial amounts.

In just the past week, these whales have sold over 40,000 BTC, which amounts to more than $4.3 billion. This selling pressure appears to be a response to the recent price increase of Bitcoin. Large holders may be uncertain about the rally's sustainability.

These whale sales could negatively impact Bitcoin's price. Large-scale simultaneous selling can create downward pressure. Due to whale selling, Bitcoin might not maintain its upward momentum.

Bitcoin Whale Holdings
Bitcoin Whale Holdings. Source: Cryptocurrency online data platform Santiment

In addition to whale selling, the Liveliness indicator tracking Bitcoin transaction frequency has sharply increased this week.

Rising Liveliness indicates that long-term holders (LTH) are moving their assets rather than holding them. This suggests that LTHs are choosing to sell rather than increase their holdings. This is similar to whale behavior.

LTHs can significantly impact the Bitcoin market. If they continue selling, price volatility could increase and Bitcoin's price recovery might be limited.

Bitcoin Liveliness
Bitcoin Liveliness. Source: Cryptocurrency on-chain data analysis platform glassnode

Will BTC Price Exceed $110,000?

Bitcoin's price has risen 7% in the past 24 hours, reaching $108,145 at the time of writing. The cryptocurrency is attempting to establish $108,000 as a solid support level.

However, continued whale selling and changes in LTH behavior could cause it to fall below this level.

If Bitcoin fails to secure $108,000 as a support level, the next support could be around $105,622, and with further decline, the price could drop to $102,734.

These downward movements could occur if market sentiment turns more bearish due to whale selling and LTH behavior.

Bitcoin Price Analysis.
Bitcoin Price Analysis. Source: TradingView

Conversely, if institutional demand continues to increase and surpasses selling pressure from whales and LTHs, Bitcoin could break through the $109,476 resistance.

A strong break above this level could open the path for Bitcoin to reach $110,000, invalidate the current bearish narrative, and maintain its upward momentum.

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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