Bitcoin [BTC] finally broke the $80,000 resistance after repeated rejections at $79,000 in the past month. Notably, BTC has risen to $82,000, a level last seen in late January, before bouncing back to $80,000. Amid continued upside volatility, market participants, especially whales, have significantly increased their activity on the exchanges.
In fact, the Bitcoin Exchange Fund Flow Ratio has increased from 0.001 to 0.08, reflecting this intense exchange activity, indicating increased activity on both the supply and demand sides, with whales actively involved.
Bitcoin whales dump BTC worth $205.2 million
According to Look at chaintwo whales sold 2,521 BTC worth $205.26 million to take profits. These whales were sold after holding BTC for less than a month, and one was offloaded after just five days. Their sales came as BTC crossed the $80,000 mark, locking in profits. Together, the two wallets secured a combined profit of $13.5 million.
Traditionally, when BTC encounters whale-induced selling pressure, the market cools down, often leading to a price drop as demand fails to absorb the selling pressure.
Regardless of the price increase, some whales are re-entering the market, possibly in an attempt to chase the market. Onchain lens reported that a whale withdrew 283 BTC worth $22.94 million from Binance. After the purchase, the whale now owns 1,283 BTC worth approximately $104.3 million.
This contradictory market behavior emphasizes the prevailing sentiment. In reality, whales are not heavily marketed.
Looking at the Exchange Whale Ratio, the value has fallen two days in a row after previously rising. At the time of writing, the ratio was set at 0.56, indicating that the price increase above $80,000 did little to increase whales’ appetites.
What whale activity means for BTC
Bitcoin fell from $82,000 as sell-side activity surged, especially from whales. The gain realization as BTC reached January levels was followed across the market by participants who held on through a tough period. Still, the pullback remained minimal as others, including whales, continued to rally above $80,000.
For that reason, Bitcoin’s bullish structure remains intact. As such, upward momentum remains relatively strong, as evidenced by the Stochastic Momentum Index.
At the time of writing, SMI at 61 suggested that buyers have shown greater determination to defend higher levels, although sellers are also actively trying to regain control. With the uptrend even stronger, this reflects the potential for a longer uptrend.
In fact, the MaMA showed the market trading within a tight adaptive range, with positive feedback above $79,000. Since whales are active on both sides, this indicator therefore indicates the potential for a new lateral movement. So, the market could see another sideways move with $79,000 as the main support and $84,000 as immediate resistance.
However, if profit taking increases, BTC is likely to retreat towards $77,716 and attempt another move higher from here.
Final summary
- Two Bitcoin whales sold 2,521 BTC worth $205.26 million, making a profit of $13.5 million.
- BTC’s bullish structure remains intact and trading within a tight adjustment range, while whale activity suggests possible sideways movement.