Following rejection at $72k, Bitcoin’s [BTC] bearish pressure intensified, with BTC dropping to a low of $65,080 and then slightly rebounding to $66,725.
At press time, BTC was trading at $60,000, down 1.64% on the daily charts. While the market has continued to decline, investors, especially whales, are less incentivized to hold on and have capitulated.
Bitcoin whale dumps $559M in BTC
When BTC fell below $90k, whales stepped in and bought, believing the price could not go lower. However, as the dip deepened, whales panicked and began to close positions.
Based on Whale Trend Analysis Indicator from TradingView, whale sell-side activity has remained steady for two consecutive weeks.
Source: TradingView
After the price dropped below $70k again, whale purchases disappeared, with sellers largely dominating the market.
In fact, Lookonchain observed an active whale on the side. Over the past 2 days, the whale has deposited 8,200 BTC, valued at $559 million, into Binance.
Source: Lookonchain
Strangely, every time this whale reduced its holdings, BTC has followed suit with a price drop. Following the latest sale, BTC declined by more than 3%, reaching a low of $65080, indicating significant downside pressure on price action.
Usually, when whales are constantly short during a downtrend, it signals strong bearish conviction and a fear of further losses.
BTC remains stuck within a macro risk-off period
Bitcoin has faced significant downside pressure, particularly from whales, who are offloading to minimize risk. As a result, downward momentum has further strengthened, leaving BTC on the losing side.
In fact, Bitcoin’s Ease of Movement (EOM) has remained negative for 30 consecutive days. This implies that the price has continued to decline readily despite low volume.
As such, sellers have consistently pushed prices down with little resistance. This implies that buyers have retreated, with sellers assuming full control of the market.
Source: TradingView
Therefore, even slight selling pressure currently exerts significant downside pressure due to thin demand-side liquidity. At press time, the Money Flow Index (MFI) was at 32. It further indicates weakened buying pressure and dominant selling pressure.
Continuing the current setup could result in BTC experiencing further losses, breaching $65k, with an elevated risk of dropping toward the $60k support level.
On the other hand, a trend reversal requires buyers, especially whales, to be incentivized to return to the market. Looking at the Exchange Netflow, every time buyers stepped in, pushing netflow down, BTC has made slight gains.
Source: CryptoQuant
For instance, it recovered from a $65k decline after netflow dropped to -1.4k BTC, indicating positive price demand.
Under such circumstances, BTC could effectively hold the pressure, avoid further declines, and reclaim the $74k resistance level.
Final Thoughts
- A Bitcoin whale continued a dumping spree, offloading 8,200 BTC, valued at $559 million.
- BTC continued to trade between $65k and $67k amid thin buy-side liquidity.
