In the past week, Bitcoin whales have executed substantial sell-offs, offloading almost 60,000 BTC. Concurrently, traders are exercising caution as the open interest in the market experiences a decline. This significant movement by whales raises concerns and prompts a vigilant approach among market participants.
Following Bitcoin’s surge past the $37,000 mark in its ongoing rally last week, there appears to be a concerted effort by the bulls to maintain these elevated levels. As of the latest update, the BTC price is currently trading at $36,950, encountering downward selling pressure. The evolving market dynamics suggest a tug of war between buyers and sellers as they contend for control at these crucial price levels.
Bitcoin Whales Sell 60,000 BTC Amid Diminished Open Interest
According to on-chain data, Bitcoin whales have systematically divested their holdings over the past week. Analyst Ali Martinez, citing Santiment data, highlighted that these whales have been capitalizing on profits, selling or redistributing around 60,000 BTC with an estimated value of about $2.22 billion.
Courtesy: Ali Charts
Moreover, the total open interest (OI) has now fallen below levels seen when Bitcoin was valued at $25,000, indicating a decline from previous benchmarks at the current price. Despite the notable price increase, the reduced open interest suggests a potential lack of fresh capital entering the futures market, reflecting a cautious or bearish sentiment among traders.
Amid ongoing uncertainties, predictions of Bitcoin retracing to $20,000, $25,000, or potentially dropping below $30,000 persist among analysts. These forecasts stem from concerns related to regulatory changes, macroeconomic influences, and the inherent volatility of cryptocurrency markets.
Bitcoin Price Outlook
In a potential bullish scenario, breaking the resistance at $37,033.37 could propel BTC to challenge upper resistance at $38,082.91, setting the stage for a market attempt to reach the year-end target of $40,000.
Conversely, if bears gain control and momentum is lost, a retreat to test the support at $36,000 may occur. A sustained bearish trend could lead to a significant price drop, with a critical support test at $33,429.29.
Insights from crypto analyst Rekt Capital provide valuable guidance for investors navigating these potential market movements.
Accumulate on any deeper retraces in orange
HODL in light blue
Re-Accumulate in red
Enjoy green$BTC #Crypto #Bitcoin pic.twitter.com/3HYjv8au6G
— Rekt Capital (@rektcapital) November 13, 2023
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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