- Metrics revealed that Bitcoin was overvalued.
- A continued price drop might push BTC down to $53k again.
Bitcoin [BTC] bulls managed to push the coin’s price up last week by a promising amount. But the trend changed in the past few hours as the king coin’s daily chart turned red again. Notably, just before the price dropped, a whale sold a substantial amount of BTC.
Are Bitcoin whales selling?
Lookonchain recently posted a tweet revealing a move made by a whale. According to the tweet, a whale sold 500 BTC, worth $30.07 million, a few ago before the BTC price dropped. This whale has made three swing trades on BTC but only made money the first time; the next two trades were losses.
Since the amount of BTC sold by the whale was substantial, AMBCrypto checked other datasets to find out whether the overall selling pressure exerted by whales was high.
As per our analysis of Glassnode’s data, the number of addresses with a balance of 10 or more BTC dropped last week. A decline in the metric means that the large players in the crypto space were selling BTC, which might have caused BTC’s price to fall in the last 24 hours.
Source: Glassnode
To be precise, BTC was down by more than 2% in the last 24 hours. At press time, it was trading at $58,789.75. Apart from this, Hyblock Capital’s data revealed that whale exposure in the market also dropped in the last 24 hours.
This was the case as Bitcoin’s whale vs retail delta fell from 64 to 0. For starters, when the whale vs retail delta drops to 0, it means that retail investors and whales have equal exposure in the market.
Source: Hyblock Capital
However, whales’ actions weren’t the only thing to blame for this price decline. AMBCrypto also found that BTC’s NVT ratio increased. Generally, a rise in the metric means that an asset is overvalued, which often results in price corrections.
Source: Glassnode
What to expect from Bitcoin
AMBCrypto then checked the king of cryptos’ weekly chart to find out what might happen if the bears continue to push the coin’s price down. As per our analysis, a continued price drop might push BTC once again towards its support near $53k.
Read Bitcoin’s [BTC] Price Prediction 2024–2025
A slip under the support could result in BTC dropping to $43k. However, AMBCrypto reported earlier that there were strong chances of BTC’s price rising. One of the reasons was Bitcoin’s NVM ratio, which dropped.
If BTC bulls take over, then the coin will first approach its resistance near $61k. A successful breakout might allow BTC to eye $68k in the coming weeks.
Source: TradingView
