Bitcoin’s price took another downturn after a brief uptick to $94,000 on Monday, highlighting the continued volatility of the cryptocurrency market. Earlier this week, it seemed like Bitcoin might be bouncing back after a slump, but that optimism was quickly dashed.
Currently, Bitcoin has fallen below the $90,000 mark, experiencing a 1.8% drop over the past day. According to CryptoQuant analyst Crazzyblockk, a significant driver of this decline is the selling pressure exerted by large Bitcoin holders.
Crazzyblockk has pointed out that the activity of “whales” and other substantial investors on platforms like Binance is pivotal. These well-heeled traders are seizing the opportunity of rising prices to exit their positions. This strategic move suggests they are not confident in a sustained rise, which could hinder Bitcoin’s ability to gain stronger momentum in the short term.
On Twitter, data from CryptoQuant highlights a spike in Bitcoin flow to Binance, reaching $7.3 billion over the past month. “This usually aligns with significant price shifts and underscores that big holders prefer Binance for their transactions. Monitoring such whale deposits is crucial, as their trades can sway the market,” says JA_Maartun, a fellow analyst.
The increase in whale activity on Binance aligns with this trend, as large holders—known as fish, sharks, and whales—are cashing in on market highs. On-chain data supports this assertion, demonstrating that these big players are actively influencing the price by upping their sell-side activity on Binance.
Although Bitcoin’s rise has enticed more transactions from large holders, smaller retail investors, often called “shrimps,” are staying relatively quiet. This imbalance has contributed to the persistent downward pressure, impeding Bitcoin from soaring to new heights.
Looking ahead, the market faces a critical question: Can the ongoing selling by whales be offset by renewed investor interest? With major holders shedding their Bitcoin, any upward movement might just spark another wave of selling, reinforcing resistance levels.
For Bitcoin to truly break free of these constraints, it might require a new wave of buying from long-term or institutional investors to counterbalance the current selling trend.
Crazzyblockk underscores the importance of keeping tabs on whale behavior at Binance, as these heavy hitters aren’t just participants but also key influencers in price movements. If the selling by whales diminishes and fresh buyers step in, Bitcoin might gather the strength to rally again. Yet, if this selling trend persists, the chances of further price drops remain.
(Image by DALL-E, Chart sourced from TradingView)
