Recently, Bitcoin has been expressing tremendous force, with its price seeing a relentless uptrend. This has allowed it to break through multiple levels of strong resistance and turn them into support. However, Bitcoin whales have been taking their BTCs to exchanges, which may precede a liquidation.
The recent performance of Bitcoin and the actions of the whales in this regard
Its momentum stalled slightly yesterday afternoon after its retracement at $ 13,200. Nonetheless, this appeared to be only a slight speed readjustment, as BTC will soon retest this level as the bulls move to claim $ 13,000.
The strength of this rally has been impressive, but BTC could face a slight selloff due to spot selling pressure from Bitcoin whales. In this regard, Ki-Young Ju, CEO of the CryptoQuant analytics platform, offered some comments about it.
He explained in a tweet that Bitcoin whales are starting to transfer parts of their accumulated cryptocurrencies to different exchanges. Typically this is the prelude to a series of sell-offs, which could put pressure on the price of BTC.
“BTC whales are being deposited on exchanges. I expect a little drop. The average inflow of all exchanges (24 hours) exceeds 2, but the bull market will continue, as the whale index in the exchanges remains low«Said the businessman.
That said, unless this pushes the cryptocurrency below the support it has established across the entire region of $ 12,000, it is unlikely to do much damage to its openly bullish market structure.
BTC moves toward $ 13,000 after slight overnight sell-off
At the time of writing, Bitcoin is trading at $ 12,936 according to CoinDesk. This represents a decrease of 1.34% compared to 24 hours ago. This is where it has been trading for the last 12 hours or so.
Yesterday afternoon, the cryptocurrency rallied to highs of $ 13,200 before facing a pushback that sent it back into the $ 12,000 region. It has been consolidating ever since, struggling to gain decisive momentum as investors seek to hit $ 13,000.
Lack of follow-up post-rejection settlement favors bulls. Furthermore, it seems to indicate that it is only a matter of time before buyers break the resistance at $ 13,000.
However, how buyers respond to an influx of selling pressure from Bitcoin whales will provide some serious insights as to where the entire market may trend 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 December 9, 2017, according to Glassnode.