Bitcoin whale holdings have fallen to the lowest point in six years, which raises apprehensions regarding the asset’s pricing course amid its present difficulties. Fascinating insights from on-chain data analysis platform IntoTheBlock reveal that the total quantity of Bitcoin possessed by whales has decreased to figures last observed in 2019.
This downturn occurs as Bitcoin is battling to sustain momentum above $90,000, with most of the past week’s transactions occurring between $85,000 and $90,000.
Whale Holdings Decline As Netflow Decreases Significantly
Over the past two weeks, Bitcoin has experienced significant selling pressure, causing it to lose its solid standing above $90,000. Intriguingly, IntoTheBlock’s recent information shows that the netflow of Bitcoin among bigger holders has fallen drastically, with outflows surpassing inflows from these whale addresses. Currently, the overall quantity of BTC owned by whale addresses is at its lowest since 2019.
Image From X: IntoTheBlock
IntoTheBlock’s whale transaction indicators track addresses owning at least 0.1% of the total circulating supply of Bitcoin. In the last week, whale net flow has plummeted by 85.78%, and in the past month, it has regressed by 70.22%. A sharp decline in whale accumulation frequently suggests reduced confidence among significant investors, prompting concerns of heightened selling pressure.
Implications For Bitcoin’s Price Amid Market Challenges
As of this writing, Bitcoin is priced at $86,115, showing a 0.5% drop in the past 24 hours and a minor 0.2% decrease over the last week. This relatively modest movement indicates that Bitcoin may have entered a consolidation stage at this level, with buying and selling pressures appearing to be almost equal.
During the past week, bulls have made attempts to drive Bitcoin past the crucial $90,000 resistance level, briefly succeeding on several occasions. Nevertheless, sellers have repeatedly regained dominance and pulled the price beneath this level. The newly initiated US crypto reserve has not contributed significantly to the bullish sentiment, as crypto participants seem to be disheartened by the details of the reserve.
This trend is echoed in the decrease of whale holdings. If whales persist in selling off Bitcoin instead of accumulating, the supply dynamics may shift against a robust breakout above $90,000. Consequently, there’s a chance of a deeper pullback towards lower support levels at $82,000 and $78,000 in this upcoming week.
Adding to these worries, crypto analyst Ali Martinez highlighted a technical development. According to the analyst, a crossover has occurred between the 50-day and 100-day moving averages on the daily candlestick timeframe chart. This crossover has seen the 50-day moving average move below the 100-day moving average, creating a death cross with downside risks if Bitcoin fails to engage new buying interest.
Image From X: Ali Martinez
Featured image from Built In, chart from TradingView
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