Can Bitcoin [BTC]’s movement above realized price fizzle out based on market sentiment?
The broader recovery of the crypto market in July has taken a new turn recently. Bitcoin [BTC] is effectively leading the charge with the latest bullish activity. However, suspicious whale movements have raised a few eyebrows in the market that have instilled FUD sentiment in the community.
Another day, another drama
Bitcoin has been fluctuating below its realized price since 13 June, as per a CryptoQuant analysis. This is indicative of a possible market bottom. However, there has been an upturn in the situation with the recent sharp rise. With the latest bull charge in the past two days, Bitcoin is trading above the realized price. The question is whether it will stay over this threshold and use it as a support level or drop below this line again.
However, Arcane research has updated on a worrying trend in whale activity since the Terra collapse. Analyst Vetle Lunde claims that over 236,237 BTC has been liquidated since 10 May and large institutions are to blame. He further stated, “Most of the selling is related to forced selling, and some are not.”
That’s the amount of known selling of bitcoin since May 10th by large institutions. Most of the selling is related to forced selling, and some is not. pic.twitter.com/wNLjgvvFmn
— Vetle Lunde (@VetleLunde) July 21, 2022
The largest sell-off was observed in the Luna Foundation Guard’s (LFG) attempt to save the peg. More than 80k BTC was deployed but the ecosystem still collapsed sending shockwaves across the industry. This prompted public miners to sell their own holdings and in May they sold up to 4,456 BTC and a further 14,600 BTC in June. The next major sell-off was seen after Tesla sold 75% of its Bitcoin holdings. This sell-off totaled over 29,060 BTC at an average price of $32,209.
A slight miss for BTC
BTC is trading just below $22,850 at press time after a mild dip over the past day. Nevertheless, there are shout-outs of Bitcoin to breach the $23,000 resistance after another bullish resurgence. Will the king coin break through this ceiling is another question that remains to be answered.