After rejecting $72k, Bitcoin’s [BTC] Bearish pressure increased, with BTC falling to a low of $65,080 before recovering slightly to $66,725.
At the time of writing, BTC was trading at $60,000, down 1.64% from the daily charts. As the market has continued to fall, investors, especially whales, have become less motivated to hold on and have capitulated.
Bitcoin whale dumps $559 million worth of BTC
When BTC fell below $90,000, whales stepped in and bought, believing the price couldn’t go any lower. However, as the dip deepened, the whales panicked and began closing their positions.
Based on TradingView’s Whale Trend Analysis Indicator, whale sell-side activity has remained steady for two consecutive weeks.
Source: TradingView
After the price fell back below $70,000, the whale purchases disappeared, with sellers largely dominating the market.
In reality, Look at chain observed an active whale on shore. Over the past two days, the whale has deposited 8,200 BTC, worth $559 million, into Binance.
Source: Lookonchain
Strangely enough, every time this whale reduced its holdings, BTC followed suit with a price drop. After the last sale, BTC fell more than 3% to reach a low of $65080, indicating significant downward pressure on the price action.
When whales continually short during a downtrend, it usually indicates strong bearish conviction and fear of further losses.
BTC remains stuck within a macro risk window
Bitcoin has faced significant downward pressure, especially from whales, who are offloading to minimize risk. As a result, the downward momentum has further strengthened, leaving BTC on the losing side.
In fact, Bitcoin’s Ease of Movement (EOM) has remained negative for 30 consecutive days. This implies that the price has continued to fall easily despite the low volume.
As such, sellers have pushed prices down consistently and with little resistance. This implies that buyers have withdrawn, with sellers taking full control of the market.
Source: TradingView
Therefore, even mild selling pressure currently exerts significant downward pressure due to limited liquidity on the demand side. At the time of writing, the Money Flow Index (MFI) stood at 32. This further indicates weakened buying pressure and dominant selling pressure.
Continuing the current setup could result in BTC incurring further losses, breaching the $65,000 mark, with an increased risk of falling towards the $60,000 support level.
On the other hand, a trend reversal requires that buyers, especially whales, be incentivized to return to the market. Looking at the Exchange Netflow, BTC has made slight gains every time buyers stepped in and pushed the netflow down.
Source: CryptoQuant
For example, it recovered from a $65k drop after net flow fell to -1.4k BTC, indicating positive price demand.
Under such conditions, BTC could effectively hold the pressure, avoid further declines and regain the $74k resistance level.
Final thoughts
- A Bitcoin whale continued its dumping spree, unloading 8,200 BTC worth $559 million.
- BTC continued to trade between $65,000 and $67,000 amid limited liquidity on the buy side.