Bitcoin is up 2X yet speculators are down: Will selling continue?
Bitcoin is down at press time, wiping all the weekend's gains and approaching $60,000. Bears may push the currency below $56,800 if they keep shorting.
On-chain data suggests spot rate weakening as the world's most precious currency approaches $60,000.
Bitcoin has rallied over 100% in the previous year, but many short-term holders (STHs), mostly traders and speculators, are underwater. STHs are businesses or addresses that acquired currencies within 155 days or before 2023.
values reached an all-time high, suggesting all coins were in circulation by mid-March 2024, and speculators were ecstatic, anticipating values to rise further. Not long after BTC broke $70,000, soaring to $73,800, values plummeted.
BTC dropped to $56,800 by mid-May before briefly reaching $71,500. At press time, sellers lead since bulls failed to breach $72,000, a trader-watched mark.
Glassnode says STHs are under pressure, but only those who purchased and HODL last year are profiting. BTC is on an upswing after a 2X spike over the last year, matching gains from the second half of 2023.
BTC Whales Selling: Why Are Hodlers Profiting? Other parallel data suggests that long-term holders (LTHs), notably those who acquired in the previous five to seven years, realize less than $7,300. These HODLers are in the money and can wait out the shake-out despite the volatility.
In this situation, Lookonchain data reveals Bitcoin whales shifting coins to Binance. Bearish moves to centralized exchanges are common. greater coins delivered means greater adverse sentiment and lower prices.
The analytics platform said that one whale gave Binance 1,023 BTC, worth $62 million, on July 3. The biggest crypto exchange received 1,723 BTC, valued over $106 million, from another whale.
