"Old whales" in Bitcoin are shifting their assets to "new whales," mostly TradFi heavy hitters like BlackRock and Fidelity, via exchange-traded funds (ETFs).
No sell-off has been officially announced, and retailers are hedging their bets by keeping an eye on the sales of "old whales" or taking other precautions.
Despite a substantial CME gap, the price of bitcoin is progressively climbing, and it is less than 5% away from its all-time high.
The price of Bitcoin (BTC) is now trending upwards, but the market's heightened volatility is limiting the price's potential gains. Meanwhile, "whales" (large investors) are selling their Bitcoin holdings to reduce their exposure to risk, while "new whales" are buying more and more.
Bitcoin purchased by TradFi from "old whales" opens wide CME gap
Those who own Bitcoin are keeping their eyes on the $73,777 top, which, if recaptured, might revive the uptrend, and the price is staying above $70,000. But it seems like whales aren't all on the same page; some are selling while others are aggressively buying.
Ki Young Ju, creator of CryptoQuant, has speculated that "old whales" in the Bitcoin market may be shifting their assets to "new whales," mostly established financial institutions like Fidelity and BlackRock. There has been a reported surge of inflows, thus these two issuers are good choices.
As a means of reducing danger, these elderly whales are relocating their holdings, according to community residents who responded to Young Ju's observation. To better prepare for the unexpected, it is recommended to move assets out of self-custody and into a regulated investment vehicle, such spot BTC ETFs.
Even if there is an open CME gap, experts agree that the price of Bitcoin is still going up.
The Chicago Mercantile Exchange (CME) futures contracts for Bitcoin did not match the market price of Bitcoin while the Bitcoin CME gap was open. Because of this, there is a noticeable change in the price of Bitcoin between the end of one trading session and the beginning of the next, resulting in a "gap" in the trading charts.
Most people think these gaps will be closed in time. This indicates that the Bitcoin price will return to fill the empty space on the graph. Notably, however, not all gaps are filled, thus this downturn is by no means inevitable.
Forecasting the Bitcoin price as long-term investors reduce risk
The $57,518–$65,501 supply zone is being breached by the Bitcoin price. If the weekly candlestick closes decisively above this order block, it might mean that the uptrend is going to keep going.
If the price of bitcoin recovers its previous high of $73,777, it may lead to more purchasing pressure, which might push the price up to $74,000–75,000 or even higher.
The MACD's placement above the orange band of its signal line, together with the Awesome Oscillator's (AO) and Moving Average Convergence Divergence's (MACD) green histograms, indicates a rising bullish attitude. Additionally, the Relative Strength Index (RSI) is showing signs of increasing momentum by reaching new highs and expanding beyond the yellow zone, lending credence to the bullish argument.
Conversely, Bitcoin's price can fall if investors begin to pay out their profits. Bitcoin price would fold into the $50,000 area if the weekly candlestick closes below the median of the supply zone at $61,509. This would stimulate additional sell orders.