Connect with us
Active Currencies 14804
Market Cap $2,223,239,906,073.30
Bitcoin Share 53.89%
24h Market Cap Change $-1.25

Will Bitcoin recover from THIS $78.5M whale sale? Metrics suggest…

2min Read

A whale sold Bitcoin worth millions of dollars, but BTC might still turn bullish soon.

Will Bitcoin recover from THIS $78.5M whale sale? Metrics suggest...

Share this article

  • Bitcoin’s exchange reserves suggested that selling pressure was high
  • Market indicators hinted at a bullish trend reversal

Bitcoin [BTC], despite a brief bout of recovery, is struggling once again after its price slipped below $55,000 on the charts. In the meantime, an institutional investor deposited BTC worth millions of dollars, fueling sell-off concerns. Does this mean that BTC may be poised to see yet another price correction in the coming days?

Are investors selling BTC?

Bitcoin, like most other cryptos, also recorded a price drop last week as the coin’s price plummeted by nearly 8%. The bearish price trend continued in the last 24 hours because it dipped by over 2%. At the time of writing, BTC was trading at $54,284.69 with a market capitalization of over $1 trillion.

While that happened, a large-scale investor sold a substantial amount of BTC. To be precise, Galaxy Digital deposited 1,458 BTC worth $78.5 million to Coinbase Prime. This update from Lookonchain suggested that whales are now selling BTC. Whenever whales sell BTC, it means that they are expecting an asset’s price to drop further.

Hence, it’s worth taking a lot at other datasets to see whether selling pressure on the coin has been rising or not. 

According to AMBCrypto’s analysis of CryptoQuant’s data, Bitcoin’s exchange reserves have risen lately. By extension, this meant that selling pressure on the coin has been high.

Apart from that, at press time, both BTC’s Coinbase Premium and Funds Premium were red – A sign that selling sentiment was dominant among U.S and institutional investors. 

BTC's exchange reserve increased

Source: CryptoQuant

What do the market indicators suggest?

We then assessed the crypto’s metrics to find out whether they also hinted at a further price correction.

As per our analysis of Glassnode’s data, BTC’s NVT ratio fell on the charts. Whenever that happens, it suggests that an asset is undervalued, hinting at a price hike. 

BTC's NVT ratio dropped

Source: Glassnode

Additionally, BTC’s aSORP was green, meaning that more investors have been selling at a loss. In the middle of a bear market, it can indicate a market bottom.

Also, its binary CDD implied that long-term holders’ movement in the last 7 days was lower than the average. They have a motive to hold their coins. This can be inferred as a bullish signal. 

Source: CryptoQuant

Hence, we took a look at the coin’s daily chart to better understand which way it may be heading. Our analysis revealed that BTC seemed to be testing a support level. The coin’s price also touched the lower limit of the Bollinger Bands, which often results in price hikes. 


Read Bitcoin’s [BTC] Price Prediction 2024–2025  


Finally, both its Relative Strength Index (RSI) and Chaikin Money Flow (CMF) registered upticks too – Again, indicator of an upcoming hike. 

Source: TradingView

Share

Dipayan is a full-time journalist at AMBCrypto. He has 2 years of experience in the content creation industry. A graduate in journalism, Dipayan has a keen interest in keeping himself updated with the latest developments in the crypto-space. He is a singer and a guitarist who also enjoys going on long bike rides.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.