A whale with 8000 BTC moved 2000 BTC to exchanges, hinting at a pending sale. However, Bitcoin still sits practically unchanged at $87,700 and has increased onl y 0.31% today during the sell-offs.
On Thursday saw Bitcoin achieve a new all-time high of over $90,000 after a week of continuous gains. On Wednesday, it traded slightly lower at $87,700, followed a 0.52% rise over the past 24 hours.
Such price changes have been anticipated as there has been notable bullish pressure on the market since November 5.
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Crypto Whale Transfers 2,000 BTC for Sale, Will This Stall BTC Growth?
Over the past few weeks, a notable crypto trader, or whale, holding 8,000 BTC, worth over $699 million at the time, has been active in the market.
The whale has transferred 2,000 BTC worth approximately $176.7 million, likely to prepare for a forthcoming sale.
Of this amount, 300 BTC has precedence of movement, having been transferred to Binance, which foreshadows an impending liquidity transfer on that exchange.
The whale’s past activities suggest a pattern of capitalizing on market peaks, as seen in April when it sold 2,000 BTC for $132.4 million at an average price of $67,130 per BTC.
Such significant transfers often spark interest, as they can influence market trends and price movements.
In the coins’ historical traded volume, this coin’s whale sold 2000 BTC for $134.4 million at the rate of $67,130 per BTC upon reaching its peak in April.
Such significant transfers often spark interest, as they can influence market trends and price movements.
Current BTC Selling Pressure Low Compared to Past Peak Clusters
At the same time, Bitcoin’s current selling pressure is still lower relative to previous spikes. According to crypto analyst Axel Adler Jr, the state of the current market is not comparable to the levels of sell-off seen during the previous significant withdrawals.
The selling pressure does not appear quite so serious, meaning that short-term holders of the assets are seeking to realize some profits without swamping the market with excessive sales.
The chart above shows that periods of high selling intensity have formed clusters. The current period is, however, not marked with any abnormal selling force, thereby leaving room for the price to continue higher if buyers remain strong.
This suggests that while there is some profit consolidation going on, there still appears to be some upside potential in the market as long as there is not a massive increase in selling pressure.
Bitcoin in 3rd Candle of Bull Cycle: Diminishing Returns Ahead?
Steve Courtney from Crypto Crew University has informed the readers about the position of Bitcoin during its bull cycle. As it stands, the cryptocurrency is in the third candle of the four-candle sequence that is recurrent.
Historically, the third candle in this sequence has always had less return relative to its previous ones. In this regard, upward momentum will likely slow towards the end of the year.
Previously, during other cycles, the BTC price rise was somewhat similar, at the onset of the bull market, there was a bullish engulfing candle marking the beginning of the cycle.
The third candle turned out to be the fly in the ointment since it didn’t allow any sustainable levels of expansion and rather acted as a consolidation stage.
With this, Courtney asks the same question: will this time Bitcoin follow this pattern, or will the bulls surprise the market by breaking the cycle with an increase?
In general terms, the bitcoin price has proven to be fairly resilient to these sell-offs, which are only moderate.
As the whale activities do, however, the third candle pattern, which has expressed itself on two occasions before, suggests that the market is being closely observed, and probably not for the first time.
Such trends will probably continue as Bitcoin goes through various cycles in anticipation of further enhancement in the price or for the price to return to a more neutral position.
