Bitcoin whales are depositing their tokens in exchanges, so there could be selling pressure that would affect the BTC price.
Recently, Bitcoin has been expressing tremendous strength, with its price seeing a relentless upward trend. This has allowed it to overcome multiple levels of strong resistance and turn them into support. However, Bitcoin whales have been taking their BTCs to the exchanges, which can precede a settlement.
Bitcoin’s recent performance and the whales‘ action on it
Its momentum stalled slightly yesterday afternoon after its retreat of US$13,200. However, this appeared to be only a slight readjustment in speed as the BTC will soon test this level again as the bulls move in to claim the US$13,000.
The strength of this rally has been impressive but BTC could face a slight sales wave due to the cash sale pressure from Bitcoin whales. Ki-Young Ju, CEO of the CryptoQuant analysis platform, offered some comments on this.
He explained in a tweet that Bitcoin whales are starting to transfer parts of their accumulated cryptosystems to different exchanges. This is usually the prelude to a series of settlements, which could put pressure on the BTC price.
„BTC whales are being deposited in exchanges. I expect a small drop. The average inflow of all the exchanges (24 hours) is above 2, but the bull market will continue as the whale index on the exchanges remains low,“ the businessman said.
That said, unless this pushes the cryptomone below the support it has established throughout the region of $12,000, it is unlikely to cause much damage to its overtly bullish market structure.
BTC moves up towards US$13,000 after a slight overnight settlement
At the time of writing, Bitcoin is quoted at US$ 12,936 by CoinDesk. This represents a decrease of 1.34% from 24 hours ago. This is where it has been operating for the last 12 hours or so.
Yesterday afternoon, the crypto currency recovered to highs of US$ 13,200 before facing a rejection that sent it back to the region of US$ 12,000. It has been consolidating since then, struggling to gain decisive momentum as investors look to reach US$ 13,000.
The lack of follow-up on the post-rejection settlement favours the bullish side. Furthermore it seems to indicate that it is only a matter of time before buyers break through the resistance at US$ 13,000.
However, how buyers respond to an influx of sales pressure from Bitcoin whales will provide some serious insights into where the whole market may be headed next. While this is happening, active Bitcoin addresses are at the highest level since the 20K price record of 2017.
The number of active entities, or groups of addresses controlled by a single network participant, jumped to 388,697 yesterday. This is the highest level since 9 December 2017, according to Glassnode.