Following a phase of intensified fluctuations due to a wider market collapse, Bitcoin seems to be recovering an upward path as prices consistently remain above the $102,000 threshold. BTC could be indicating the possibility of a significant comeback, but pessimistic sentiment continues to linger among major Bitcoin investors.
Massive Liquidations Among 10-100 Bitcoin Holders
As Bitcoin advances in a favorable manner once again, holders of 10-100 BTC are disposing of their assets on a large scale. Axel Adler Jr, a technical analyst and writer, noted the alarming shift in investor sentiment in an X post, raising doubts about the sustainability of BTC’s pricing.
On-chain analytics reveal that the quantity of wallets holding 10-100 BTC has been consistently diminishing for almost two years. This ongoing divestment by this group could be interpreted as profit realization or tactical repositioning as BTC gathers strength for an increase.
In June 2023, the amount held by these investors reached a peak of 3.2 million BTC. However, the total has significantly dropped by more than 600,000 BTC, reducing the balance to 2.6 million BTC. Meanwhile, the average volume for this category of whale investors is 3.15 million BTC.
The expert pointed out that investors have been liquidating amounts ranging from $1 million to $10 million since the downward trend began. Consequently, a significant number of genuine millionaires have emerged in the market in the last six months.
Historically, the actions of large investors significantly sway BTC’s pricing trajectory and stability. Although Bitcoin is gradually recovering, a prolonged divestment by these investors could impede the increasing momentum, potentially leading to a regression toward crucial support levels.
During the recent downturn brought on by a larger market decline, the overall supply of BTC at a loss has surged significantly. Axel Adler indicated that Bitcoin’s drop to the $98,000 price point resulted in a considerable rise in the total BTC supply at a loss to approximately 2 million.
This increase corresponds with investor apprehensions regarding the open-source unveiling of DeepSeek’s solution and inflated valuations for Artificial Intelligence (AI) companies. With 2 million BTC now being traded below their acquisition cost, this situation may indicate heightened selling risks for the asset.
However, the overall supply at a loss has now decreased to 738,000 BTC as prices gradually ascend, aligning with the quarterly average for this indicator. The decline reflects a stabilization of the market and a return to normal levels.
BTC’s Price Under Bearish Pressures
Analyzing BTC’s recent price developments, the leading asset seems to be approaching a consolidation period while fluctuating between $103,000 and $100,000. This movement is driven by rising bearish momentum and a decline in investor sentiment, increasing the likelihood of an extended consolidation period.
With bearish pressure intensifying, Bitcoin is trading just above $102,500, reflecting a nearly 3% decrease over the day. The decrease in BTC has triggered selling activity among investors, indicated by a drop in its trading volume by more than 44% in the last 24 hours.
Featured image from Unsplash, chart from Tradingview.com