A Bitcoin [BTC] seven-year holder took profits last week, according to data from Capriole Investments. The sale of $271 million worth of BTC took place on Sunday, April 5.
A Bitcoin whale dumping of similar magnitude was observed in January. A $280 million selloff on January 10 was followed a few days later by a deep price correction below the $90,000 level.
The news of the whale sale came alongside institutional holders choosing to sell Bitcoin as well. AMBCrypto reported that Bitcoin mining company Cango (CANG) sold 2,000 BTC in March as part of a “planned transition to energy and AI infrastructure.”
BTC buyers are doing well to absorb the supply so far
Despite the selling pressure, Bitcoin’s price has continued to fluctuate in the $65k-$72k range over the past month. The range formation of the past few weeks and the local high of $76k have been serious obstacles for the bulls.
The 30-day moving average of net volume flows into and out of exchanges has been negative since March 3. This indicated accumulation as the price moved within a certain range and was an encouraging sign after February’s volatility.
Investors should keep an eye on this metric. A slowdown in accumulation trends combined with bearish price momentum on the lower time frames would be a warning that BTC may be gearing up for another downward move.
Interestingly, the recent wave of whale selling has been combined with declining activity among major BTC entities. The relative activity metric tracks the momentum of activity of small and large entities.
Large entity activity has fallen since the price crash in early February. There have been occasional increases, such as the one seen during the mid-March rally.
Overall, decreased activity from major market participants indicated bear market conditions and is typically associated with downtrends or consolidations.
So while the 30-day moving average suggested that recent sales were being absorbed, this could change quickly.
A wave of panic could lead to price capitulation and cause the larger entities to sell en masse, greatly increasing the pressure on buyers to maintain current supply.
Final summary
- A sell-off of the OG Bitcoin whales reached $271 million last week, but the price has since risen above the psychological level of $70,000, demonstrating the absorption of supply.
- Since March, activity levels from major entities have fallen, indicating little demand from the whales.