Bitcoin is still trading just below the $100,000 mark, and while many traders are getting greedy, others are getting worried. Large investors holding large amounts of Bitcoins are more conservative and waiting on the sidelines as the price fluctuates and retests.
As reported by CryptoQuant analyst, these whales have been transferring Bitcoin to exchanges after the US election on November 5, but they are still hesitating to sell them. This behaviour implies they are waiting for the right time, most probably for hedging or preparing for over the counter (OTC) activities.
Whales Transfer Bitcoin to Exchanges
Bitcoin is currently trading at $96,652 as of the data from CoinMarketCap. However, the above does not mean that there are no signs of movement within the market. Whale addresses that have majority of the BTC have been sending large values to exchanges for some time now. This could suggest a near term sell down as has been seen in other new issue markets.
However, since the Bitcoin has not been sold at this point could assume it is being used for other purposes such as collateral or for future trading. The recent increase in the amount of BTC on exchanges has the analysts on the lookout for sell-offs, however, no signs of this are currently being seen.
CryptoQuant’s analysis shows that many BTC whales are taking a “wait and see” approach. The rise in the movement of Bitcoin to exchanges does not necessarily mean that investors are all set to book their profits. The SOPR (Spent Output Profit Ratio), the Adjusted SOPR is still relatively low which indicates that more significant wallet owners are not selling their coins en masse.
The market capitalization of BTC has also declined in the crypto market as a whole. TradingView shows that Bitcoin’s market dominance has declined by 5.54% since November 28. This trend shows that traders are liquidating their BTC and heading towards other cryptos, targeting other coins. Although cryptocurrency is still the king of the cryptocurrency, this shift from BTC indicates that investors are looking for other assets within the market.
Investors have become more cautious about the possibility of BTC hitting the $100,000 level by the end of 2024. Despite being in close range to the milestone, BTC has seen several pullbacks. On November 22, Bitcoin was trading at $99,800, having come within $200 of the $100,000 mark but then pulled back before dropping down again.
Bitcoin Showing Breakout Potential
Long-term investors are also not negligible in the present market situation also. As per the data CoinMarketCap data, the long term holder realized price of BTC is $24,994 which is the average price at which those investors have bought the coin. This is because the current prices of BTC are way higher than the initial cost of long-term holders acquiring them, indicating that many are not eager to dispose of their assets.
Bitcoin is still indicating some potential for a breakout, but overall the market is still quite shy. In a recent thread on X (previously Twitter), Analyst Rekt Capital explained that Bitcoin has been reaffirming the lower highs as support and generating longer downside wicks. That suggests that BTC is attempting to grab liquidity at lower prices without penetrating its descending trendline. As long as the price of BTC stays above this level around $96,400, there’s a chance that the price may start to rise again.
The world will be looking towards the next major change of BTC in the time leading up to 2024. The whales will either stay put or start divest some of their assets. The reactions of the market to these movements will most probably dictate if BTC will break through the $100,000 mark or if it will fall back again. Bitcoin keeps oscillating between hope and despair, promising something big but not showing the right direction to achieve it.
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