Key Points
- Bitcoin buying pressure increased last week, indicating potential move towards $68k.
- Bitcoin whales cashed in over $1.4 billion in profits, affecting market sentiment.
Bitcoin [BTC] has entered another consolidation phase with its price hovering around $67k. Large scale investors have chosen this time to cash in their profits, raising questions about the potential impact on BTC’s future price.
Bitcoin Whales Influence Market
Crypto analyst, Ali, recently highlighted that Bitcoin whales have cashed in over $1.4 billion in profits. This was evidenced by the significant rise in BTC’s long-term holders whales’ realized profit in USD.
BTC whale activity has seen an increase, with their holdings expanding towards the 4 million mark. This brings the number of BTC whales back to 2021 levels.
To understand the impact of this surge in whale activity on market sentiment, an analysis of Santiment’s data was conducted. It showed that BTC’s exchange outflow spiked on the 20th of October 2024, resulting in a decrease in BTC’s supply on exchanges and an increase in its supply outside of exchanges. These metrics suggest a high buying pressure on Bitcoin, often a precursor to price hikes.
Bitcoin’s Market Volatility
While these developments were taking place, BTC’s price began to consolidate. At the time of writing, it was trading just above $67k.
An analysis of CryptoQuant’s data was performed to understand if the rise in buying pressure would translate into gains for BTC. The data revealed that BTC’s aSORP turned red, indicating that more investors have started selling at a profit. In a bull market, this can signal a market top.
Another bearish metric, the NULP, showed that investors were in a belief phase, currently holding high unrealized profits. Additionally, Bitcoin’s long/short ratio saw a major decline, indicating an increase in bearish sentiment around the asset.
A review of the king coin’s daily chart revealed that BTC has successfully tested its support at the 20-day SMA. The technical indicator also suggested that BTC’s price was in a high volatility zone. These factors suggest that if an upward price move occurs, BTC might soon reach its resistance at $68.5k.
