Bitcoin Whales Sell 36,000 BTC Amid Bearish Signals
We have always followed the principles of transparency and clear information. Some of our content includes affiliate links, and we may earn a small commission through these partnerships. These partnerships do not influence our editorial independence or opinion. By using our site, you accept our privacy policy and terms and conditions.
A Senior Altcoin Analyst, Sarah combines on-chain data with a background in venture capital research. With a Master’s in Computer Science, she provides precise evaluations…
Cryptocurrency is a high-risk asset class, and investing carries significant risk, including the potential loss of some or all of your investment. The information on this website is provided for informational and educational purposes only and does not constitute financial, investment, or gambling advice. Cryptowinx does not endorse any specific exchange or gaming platform. For more details, please read our terms and full disclaimer.
Cryptowinx navigates the digital asset universe with a dynamic, forward-looking vision. Throughout our evolution, we have followed every market cycle, from vertical rises to corrections, always remaining a solid point of reference for our community. Our team is made up of industry experts and analysts who experience the blockchain ecosystem daily: we constantly monitor Bitcoin’s stability, study the expansion of the Ethereum ecosystem, and analyze the new frontiers of crypto casinos. We are committed to absolute editorial integrity, separating the signal from the noise through rigorous fact-checking and multi-perspective news analysis. In a landscape where innovations emerge in moments, our mission is to simplify complex concepts and offer transparency into what is established and what is still experimental.
Learn more Cryptowinx
As Bitcoin’s price hovers around $74,815, the cryptocurrency is testing the upper boundary of an ascending channel established since late March. Despite this upward movement, recent indicators suggest caution for traders.
Data from Bybit reveals that the two largest groups of Bitcoin holders—commonly referred to as ‘whales’—have begun to offload significant portions of their assets. The liquidation trends indicate that long positions are considerably outnumbering shorts, creating a potential risk for a long squeeze rather than an upward breakout.
Since March 29, Bitcoin has remained within an upward channel, consistently producing higher highs and lows. Yet, between April 14 and April 16, three bearish indicators emerged. The first occurred on April 14, when the price approached the channel’s peak but ultimately failed to break through, signaling weakness in the market.
The second indicator appeared as a classic bearish divergence. Here, the price reached a new high while the relative strength index (RSI) indicated a declining momentum, leading to a 3% correction. The third divergence occurred shortly after, reinforcing the concern as the price recorded another higher peak without corresponding strength in the RSI.
This combination of failed breakouts and consecutive bearish divergences is unusual and typically does not lead to positive outcomes. The critical question now is whether these large holders are interpreting the same signals as the broader market.
On-chain analysis from Santiment indicates that the two principal Bitcoin cohorts have significantly reduced their holdings. The group holding between 10,000 and 100,000 BTC cut back from 2.26 million to 2.23 million BTC, selling approximately 30,000 BTC over the span of a week. The larger cohort, with holdings ranging from 100,000 to 1 million BTC, began liquidating on April 15 as bearish signals intensified, decreasing from 670,440 BTC to 664,000 BTC—a reduction of about 6,400 BTC. Collectively, these whales have sold over 36,000 BTC in just under a week, aligning their activities with the emerging technical warnings.
The derivatives market corroborates this bearish sentiment, with cumulative long liquidations on Bybit hitting $2.37 billion compared to $1.31 billion in short liquidations. This disparity reveals that long positions are experiencing significantly higher liquidation risks, enhancing the threat of a long squeeze.
The Bitcoin price stands at a crucial junction, as it tests critical levels. The next resistance lies at $76,130, which could signal a potential breakout if crossed. Conversely, a drop below $73,484, which aligns with the Fibonacci retracement, could trigger further declines, exposing levels at $71,846 and $70,523. Should Bitcoin fall below $69,199, it would invalidate the current bullish structure and lead to targets below $67,315.
The upcoming days are pivotal, as the Bitcoin price teeters between initiating a long squeeze or securing a bullish recovery, making market movements crucial to watch closely.
Leave the reaction
Sarah Chen
Commentaries
Add your comment
Fill in necessary fields and publish