Bitcoins [BTC] The downward spiral continued, failing to maintain the $70,000 level and reaching a local low of $66,529. At the time of writingBTC was trading at $66,975, down 3.11% on the daily charts, adding to the weekly decline of 12.61%.
Amid this continued weakness, some whales have capitulated and started closing their positions.
Bitcoin whale offloads $172.56 million worth of BTC
Since Bitcoin was rejected at $97,000, it has experienced continued selling pressure, especially from whales. Price pressure on the selling side of whales has ranged between 10% and 3%, indicating strong negative pressure whenever whales are offloaded.
Amid this increased sell-side activity, Look at chain reported a whale transaction. According to the on-chain monitor, a whale has deposited 2.5k BTC, worth $172.56 million, into Binance.
Source: Lookonchain
Two weeks ago, the whale started accumulating Bitcoin as prices hovered around $81,000, with the most recent purchase occurring just 13 hours ago at the time of writing.
After BTC fell below $70,000 again, the whale sold assets to limit losses, an indication of declining market confidence.
What’s even more disturbing is that this whale wasn’t the only one. The combined exchange rate balance of whales and mega whales fell from 63,000 BTC a week ago, although it is still high.
Source: Checkonchain
Checkonchain data showed that these two groups sold 37,000 BTC in the past day, reflecting higher selling activity.
When whales continue to unload during a downtrend, it generally indicates bearishness and an attempt to prevent further losses.
Is a drop towards $62,000 inevitable?
Bitcoin has faced strong downward pressure as investors, especially whales, have started selling. The pressure on whale sales has put further pressure on the market.
Moreover, sellers have largely dominated the market. Looking at the seller’s strength, it rose to 93 at the time of writing, while buyers remained at -7.
This implies that buyers are overwhelmed and sellers have taken full control of the market. As such, prevailing demand remains insufficient to support an upward move.
Source: CryptoQuant
Furthermore, stock market activity reflected this seller dominance, especially on the daily charts. According to CryptoQuant, Exchange Netflow rose to 1.3k BTC, while inflows reached 6.6k BTC at the time of writing.
A positive Netflow indicated that more investors were moving their assets to exchanges, a clear sign of aggressive spot selling. Often, higher inflows have accelerated downward momentum, leading to lower prices, as has been seen recently.
In fact, downward momentum has further strengthened, as evidenced by the Relative Strength Index (RSI), which stood at 29.9 within an oversold zone, indicating enormous pressure on the sell side.
Source: TradingView
When momentum indicators reach such levels, they indicate the strength of the trend and its potential to continue. Therefore, if selling pressure, especially from whales, continues, Bitcoin could fall back to $62,000.
For a significant trend reversal, Bitcoin bulls need to reclaim $72,000 and flip $80,000, until these levels are reached, downside risk remains high.
Final thoughts
- A Bitcoin whale panic sold 2,500 BTC worth $172.56 million.
- BTC failed to hold $70,000, falling to a low of $66,529 before recovering to $66,975 at the time of writing.