Bitcoin whale holdings have plummeted to their lowest point in six years, raising alarms about the potential price movement of the asset amid its ongoing challenges. Recent analyses from the on-chain data platform IntoTheBlock reveal that the total amount of Bitcoin in the possession of whales has decreased to levels last observed in 2019.
This decline occurs as Bitcoin is struggling to sustain momentum above $90,000, with the majority of trading in the past week taking place between $85,000 and $90,000.
Whale Holdings Decline Significantly as Netflow Decreases
Bitcoin has faced significant selling pressure over the last couple of weeks, resulting in its inability to maintain a stable price above $90,000. Interestingly, the latest figures from IntoTheBlock show that the netflow of Bitcoin among large holders has experienced a dramatic decline, with outflows surpassing inflows from these whale addresses. Currently, the aggregate amount of BTC held by whales is at its lowest since 2019.
Image From X: IntoTheBlock
IntoTheBlock’s metrics for whale transactions monitor addresses that hold at least 0.1% of the circulating supply of Bitcoin. In the last week, there has been an 85.78% drop in whale net flow, and in the previous 30 days, a 70.22% decrease has been observed. A significant reduction in bitcoin accumulation among whales may indicate waning confidence from major investors, raising concerns about possible increased selling pressure.
Image From IntoTheBlock
Implications for Bitcoin’s Price Amid Current Market Struggles
At the moment, Bitcoin is trading at $86,115, reflecting a 0.5% decline in the last 24 hours and a minor 0.2% decrease over the past week. This relatively stable movement suggests Bitcoin is in a consolidation phase at this level, with buying and selling pressures appearing nearly balanced.
In recent days, bulls have been attempting to drive Bitcoin above the important $90,000 resistance level, briefly succeeding on several occasions. Nevertheless, sellers have consistently taken back control, pushing the price below this crucial threshold. The introduction of a US crypto reserve has not significantly boosted bullish momentum, as crypto participants seem disheartened by the details surrounding the reserve.
This trend is reflected in the declining whale holdings. If whales continue to offload Bitcoin instead of accumulating it, the supply dynamics could hinder a significant breakout above $90,000. Consequently, we could see a more pronounced pullback to lower support levels around $82,000 and $78,000 this coming week.
Further complicating matters, crypto analyst Ali Martinez highlighted a technical development. According to the analyst, there has been a crossover between the 50-day and 100-day moving averages on the daily candlestick chart. This crossover involves the 50-day moving average falling below the 100-day moving average, creating a death cross that poses downside risks if Bitcoin fails to entice new buying interest.
Image From X: Ali Martinez
Featured image from Built In, chart from TradingView
Editorial Process at bitcoinist focuses on providing thoroughly researched, precise, and impartial content. We adhere to stringent sourcing standards, and each page undergoes meticulous review by our team of leading technology experts and seasoned editors. This procedure guarantees the integrity, relevance, and value of our content for our audience.
