Bitcoin has been moving back and forth along the line between $22,500 and $23,500 with bears increasing their bets during today’s trading session. The cryptocurrency has seen an increase in selling pressure from BTC whales.
At the time of writing, Bitcoin (BTC) is trading at $22,900 with a gain of 2% in the last 24 hours and a loss of 4% in the last week. In the top 10 by market value, BTC lags behind, while Ethereum, Binance Coin, Cardano and Polkadot managed to stay in the green with profits during these periods.
Data from material indicators, shared by a pseudonymous user, signaled a shift in market dynamics for low timeframes. As shown below, Bitcoin investors with sell orders of around $100,000 to $1 million have started offloading their coins to the market.
A whale that wants to get out controlled/controlled the market.
Purple ($100k – $1M) made these steps 👇
1. Bid below to support the price
2. Market buying to drive the price up
3. Price was pushed up in the ask
4. Sales in a heavy market
5. Bids below are deleted
— Maartunn (@JA_Maartun) 5 August 2022
As a result, BTC’s price has lost momentum and could see further losses if these investors continue to apply pressure in the coming days. An analyst at Material Indicators noted that investors with these orders (purple on the chart above) have had “the most leverage over Bitcoin’s price”.
These investors’ selling pressure is preceded by a reduction in bid liquidity. In other words, as Bitcoin whales began to dump, there are fewer buy orders to act as support in the event of further losses.
This leaves BTC’s price prone to volatility, and with the weekend approaching, the cryptocurrency seems poised for potential sudden moves in either direction. The analyst at Material Indicators had the following to say about this possibility while sharing the chart below:
Expect more volatility over the weekend. If the Bear Market Rally can push BTC above 25k, there is not much friction to 26k – 28k range. Losing the trend line would be bad for bullish hopes and dreams. Watch the line (…).
Bitcoin long-term owners take profits
In support of the above-mentioned chain analyst company Glassnode posts an increase in selling pressure from Bitcoin long-term owners. These investors have taken profits after a short accumulation period.
The relief rally that the crypto market experienced gave these investors an opportunity to take profit and breakeven with their original investment:
The recent rally has given long-term owners an opportunity to exit a fraction of their holdings on their cost basis, at prices that essentially make their money back.