As it stands, the leading cryptocurrency maintains its broader bearish structure, with the price struggling to overcome the $68,000 resistance seen in recent days. However, an interesting on-chain development suggests that the Bitcoin price could likely see a relief soon, but only after a certain condition is met.
Realized wins show a warning pattern that precedes defined moves
In a recent Quicktake post on CryptoQuant, on-chain analyst MorenoDV says revealed that Bitcoin whales have realized over $208 million in profits. As reflected in the Profit Realized by Whales metric, this event – in which more than $200 million is taken as profit by members of this cohort – is the seventh such event in the past two years.
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Notably, these spikes in profit-taking have not occurred without some impact on price; instead, they have often been followed by market turbulence, which has also largely preceded the formation of local bottoms. This suggests that large-scale selling by experienced holders tends to create temporary liquidity imbalances.
After the supply of these whales is absorbed, it often leads to price stabilization. Interestingly, this stability has often preceded bullish reversals in the Bitcoin price. However, there have also been some instances where such profit-taking among this investor cohort has coincided with the creation of top local companies.
Nevertheless, MorenoDV explained that this profit-taking behavior among Bitcoin whales is usually a sign of conviction to the behavioral consistency of this investor class. As such, these big investors rarely sell on impulse, but when they do, “It signals a belief about near-term price depletion or strategic repositioning.”
If history is to be believed, the analyst explained that the Bitcoin market has a high chance of experiencing short-term turbulence. However, this also brings with it the conclusion that Bitcoin price is closer to a local depletion point than the start of a bearish market cycle.
If institutional flows, or even medium-sized holders, start to accumulate at current levels, the market could interpret this as a healthy rotation, which in turn could translate into bullish momentum. On the other hand, if demand remains insufficient or more market participants sell their assets, downward pressure could be amplified, pushing prices further south.
Bitcoin price at a glance
At the time of writing, the price of BTC is around $67,960, reflecting no significant movement in the past 24 hours.
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Featured image by Dall.E, chart from TradingView