In a notable shift within the cryptocurrency landscape, Bitcoin whales have unloaded approximately 147,000 BTC over the past month, translating to around $16.5 billion worth of digital assets. This massive sell-off comes as analysts signal increasing pressure on Bitcoin’s price, especially following its recent rally to record highs above $124,500.
The recent wave of selling predominantly involved long-term holders (LTH) who appear to be cashing out after significant gains. According to CryptoQuant’s head of research, Julio Moreno, the total supply of Bitcoin held by whales has decreased at an unprecedented rate, marking a shift of over 2.7% in just 30 days. Moreno noted, “Total balance declining at the fastest monthly rate of the cycle.”
Analysis reveals that younger LTHs, representing Bitcoin holders who have maintained their assets for six to twelve months, have been particularly active, conducting multiple transfers ranging from 8,000 to 9,000 BTC each. This increase in selling pressure continues to weigh on market dynamics, particularly given Bitcoin’s recent price fluctuations.
Data provided by Glassnode suggests that although whale activity has surged, the volume of coins moving to exchanges has remained relatively low since late August. This indicates that a significant portion of the sales is being diverted to other holdings rather than being directly sold on the open market, potentially suggesting a reallocation rather than a wholesale exit from the asset.
Contrarily, while whales are selling, institutional and corporate buyers are actively accumulating Bitcoin. Notably, Japan’s Metaplanet recently acquired 5,419 BTC, climbing into the ranks of large Bitcoin holders. Other companies, including Michael Saylor’s Strategy, have also expanded their holdings, with Saylor’s firm buying an additional 850 BTC worth nearly $100 million. This trend highlights a continuing appetite for Bitcoin among corporate treasuries, which now hold more Bitcoin than exchange-traded funds (ETFs).
As the sell-side pressure from whales intensifies, the market is looking toward institutional accumulation as a counterbalance, potentially stabilizing prices amidst ongoing volatility. River, a crypto investment firm, indicates that both corporate and ETF inflows are set to persist, absorbing the selling by long-term holders.
On the technical front, Bitcoin’s recent downturn below $116,000 has triggered a bearish flag formation on the daily chart, suggesting a possible continuation of the downtrend. The loss of support at critical moving averages (the 50-day SMA at $114,300 and the 100-day SMA at $113,400) has raised concerns among bullish investors. Many are now focused on a support zone between $112,000 and $110,000, as a break below this area could lead to a decline toward the bear flag’s target of $100,000 — an 11% plunge from current prices.
The relative strength index (RSI) has also dipped significantly, indicating increasing downward momentum within the market. As the landscape evolves, bulls may seek to reclaim ground around $106,000 if prices continue to retreat, although the market sentiment remains fragile.
As the situation continues to unfold, it is important for investors to stay informed and conduct their own research before making trading decisions, given the risks inherent in cryptocurrency investments.
