Key Points
- Bitcoin whales have cashed out nearly $800 million, indicating a potential shift in market sentiment.
- Key support levels and declining indicators suggest a possible Bitcoin price correction.
Bitcoin whales recently realized profits close to $800 million, marking a significant change in market activity.
At the time of reporting, Bitcoin [BTC] was trading at $96,153.51, showing a 2.07% decrease in the last 24 hours.
Profit Realization and Market Sentiment
This substantial profit realization is concurrent with a noticeable price increase, leading to speculation about the market sentiment.
The increase in profit-taking by long-term holders triggers important questions about a possible price pullback or the onset of a new market phase.
Bitcoin’s in/out of the money analysis reveals that 82% of Bitcoin addresses are currently profitable, with the average price for these holders at $51,086.23. This large percentage of profitable holders indicates widespread optimism among Bitcoin investors.
However, 7.85% of addresses are out of the money, meaning some holders may face losses if the price continues to drop.
Exchange Netflows and Volatility
Bitcoin has seen a 24-hour netflow increase of +2.31k BTC, indicating more Bitcoin entering exchanges, possibly in anticipation of selling activity.
Over the past thirty days, netflows have surged by +136.53k BTC, signaling substantial liquidity in the market. This inflow may suggest traders are preparing for potential volatility.
However, it could also indicate a bullish outlook if prices break through key resistance levels.
The Bitcoin chart shows that BTC is consolidating within a key price range. Support is found at $92,450.82, while resistance levels are seen at $101,441.81 and $109,260.07. These price zones are critical for determining Bitcoin’s next move.
Bitcoin’s Stock-to-Flow Ratio stood at 1.2686M, reflecting a 20% decrease over the past 24 hours, according to CryptoQuant. This decline suggests a reduction in BTC’s scarcity, which may impact its long-term value.
Similarly, the NVT Golden Cross has decreased by 29.22% over the past 24 hours, potentially signaling a market top or an impending correction.
These factors indicate that Bitcoin may face pressure in the short term, as the diminishing scarcity and declining transaction volume suggest a slowdown in demand.
The analysis suggests that Bitcoin may face challenges in breaking through resistance levels, while reduced scarcity and declining NVT figures raise concerns about price sustainability.