Bitcoin is once again facing selling pressure after a big whale dumped more than 7,700 BTC worth up to $576 million over a three-day period. The selling comes after Bitcoin surged above $78,700 with the crypto-asset still up nearly 23% for the week.
The bearish action comes on the heals of a powerful rally that saw the cryptocurrency reach fresh highs. Substantial profits for investors buying the crypto lower in the range and holding till higher levels were made and there is no doubt it will create pressure on the price.
The cryptocurrency’s bullish run has significantly improved market makers’ mood. Bitcoin was climbing throughout the week, enabling traders and whales who bought at lower prices to exit some positions while booking profits. However, the recent selling pressure could derail further gains as investors and traders seek to secure their gains amidst rising prices.
The $80,000 psychological level is now a critical level to watch as bulls eye on higher prices after facing multiple rejections around the level. Another successful break above the level would propel Bitcoin to the next level, fueling more buying frenzy as traders follow the trend. Contrarily, bears would regain control and trigger more profit-taking sessions, pressuring prices back below $80,000.
The whale’s activity has created more uncertainty for traders as the big investors have the much-needed power to dictate the price per unit of Bitcoin. One reason why whales rarely liquidate their total holdings in one trade is because they seek to benefit from the market’s every fluctuation. Thus with more whales selling, market analysts will closely watch whether more on-chain activity will unfold.
While the whale-initiated selling pressure has significantly added to Bitcoin’s weekly gains, the cryptocurrency is still higher by nearly 23% for the week. This implies that while some investors are locking profits, the overall demand for Bitcoin is not low as more buyers are still willing to buy the crypto-asset.
The upcoming trading sessions will be critical for price discovery as Bitcoin tries to overcome the hefty supply created by whales and continue its bull run higher. Traders will closely watch exchange inflows, whales’ activity, and trading volumes to time their entries and exits and determine whether the recent selling pressure is just profit-taking or the start of a larger downtrend.
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