Bitcoin Whales Shrink Assets – Here’s What to Expect from BTC in March

by James · March 2, 2023

Some Bitcoin whales have reduced the number of coins they hold.
A CryptoQuant analyst says BTC price may trend lower in the short term.

Number of addresses that hold 1000 Bitcoin [BTC] has continued to decline according to a recent update from Santiment. The on-chain analytics platform tweeted on the first day of March that these whales that were instrumental in the BTC price jump in January and February were now only 2011 in number.

As revealed by Santiment, this figure represents the lowest in about three years. Typically, massive whale accumulation results in price increases.

However, dumps from this same group put cryptocurrencies like BTC at risk of decline. So, will BTC finally succumb to the pressure of these whales?

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Investors remained skeptical

Since the last week of February, BTC had not made a significant move in the upwards direction. In accordance CoinMarketCapthe seven-day performance of the royal coin was down 4.73%, bringing the 30-day trend to a neutral stop.

This decline means that BTC was already succumbing to the impact of the top addresses’ exit. While the coin price still remained above $23,000, the view point towards BTC was very terrible. This was because the positive sentiment that peaked in the middle of last month had dropped significantly. At press time, Santiment showed the metric to be 1,245.

However, the negative feeling drew a different scenario. At the time of writing, the metric had increased to 877. Interestingly, this has been the case since the opposite number was at its highest for the year.

Considering the trend, it suggested that the broader market perception of a rally was massively truncated.

Source: Sentiment

Regardless of opinion, CryptoQuant analyst Achraf Elghemri meant that BTC could trade around $22,000 for than expected. Elghemri mentioned suspicious movements on the lists:

“Technical formation of aggregate-scale portfolios despite a low price, but there is still a target of 22,241, but generally maintaining a bottom over the bottom and the top of the top”

The analyst also referenced the Bitcoin deposit share and exchange supply Coin Days Destroyed (CDD). CDD evaluated the number of coins that are not being used. So the increase in the picture shown below meant that there was high volatility, a reversal risk and possible selling pressure.

Source: CryptoQuant

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Furthermore, the technical outlook confirmed the analysis’ position because the Bollinger Bands (BB) indicated high volatility. However, BTC was in a more objective state as the price avoided touching any of the bands.

In terms of the momentum, the Awesome Oscillator (AO) indicated slight bullish characteristics. But many of the red bars above the midpoint make a case for rejecting the bulls.