Bitcoin [BTC] whales’ holding and spending behaviors are set on opposite sides, CryptoQuant data revealed. According to the all-encompassing crypto trading data provider, the whales have been actively selling. Interestingly, the action dates to June 2022 and resulted in the dumping of 367,000 BTC. The structure of this position often has a typical effect on the possible decrease or increase in assets. Considering this status, BTC might have a hard time strengthening $17k despite its surge above $17000.
Whales spending BTC as others prepare
While there have been instances where whales have been heavily sold and hoarded, this current scenario is different. CryptoQuant’s familiarity with the situation indicated that they were not hoarding BTC, leading to a spending spree. A price drop usually characterizes this case until it continues. Therefore, BTC faced the possibility of another drop. The signs were obvious based on Bitcoin’s issued output value bands.
At such a high level, it meant that whales made up a large portion of their coin movers. However, periods of intense sell-offs were no surprise, as illustrated in the chart above. While the market may have gotten past the FTX crash and LUNA crash, there was still miner capitulation. Since it is often accompanied by whale action, a rally is expected for a while. In addition, Santiment reported that Bitcoin had reached four-year levels. Low for your trade stock.
When going to press, the supply on exchanges was 6,418.
This extremely low reading indicates that selling pressures may be easing in the near term. Additionally, data from on-chain platforms showed that the supply of rope [USDT] increased to 36,773. If this trend continues, investors are preparing to buy, and BTC might stay below its current lows. However, Supply Adjusted Coin Destroyed Years (CYD) had interesting clues based on BTC’s long-term view.
According to Glassnode, the metric had increased minimally to 173.88 at press time. At this stage, bitcoin accumulation could rise and head for all-time highs. As mentioned above, since the whales have been dumped, the action could be that of retail investors. Compared to the USDT offer, the possibility could be valid.
Won’t be here for too long
Although BTC has posted a 2.36% gain over the past 24 hours, the chart readings showed that it had yet to overcome its decline. In the future, the king coin may struggle to sustain above $17,000, as indicated by the Exponential Moving Average (EMA). At the time of writing, the 50 EMA (yellow) was approaching the 20 EMA (blue). This position meant that BTC’s recent surge had no confirmation of support, and a rejection could be imminent.
However, the 200 EMA (purple) that broke above the 20 and 50 EMAs showed that the potential drop might only last for a while.