How Bitcoin Whales Can Prevent BTC From Dropping Below $60K

Bitcoin [BTC] rapidly retreated from the $69k-$70k resistance zone.

The weekly timeframe exhibited a bearish structure, and the FOMC meeting dashed hopes for a Fed rate cut in September.

Additionally, the Sahm Rule indicated economic weakness and heightened recession fears, triggering market panic and pushing BTC lower.

The $60k region is a crucial support zone, but its defense by bulls is uncertain.

An analysis by AMBCrypto, leveraging on-chain metrics, sought to gauge long-term holder sentiment.

Crypto-analyst Axel Adler noted on X (formerly Twitter) that active sales from long-term holders had significantly decreased.

Compared to early June, the selling pressure from this group was minimal.

There was also a sharp decline in the long-term supply, indicating substantial profit-taking when BTC traded around $68k-$70k, reflecting a lack of confidence in surpassing $70k.

Conversely, this could signal that selling pressure is waning.

Whale Cohort Behavior Offers Hope

The percentage of wallets holding 100k-1M BTC has increased.

The last notable rise occurred in May 2023 when Bitcoin began to surpass the $26k resistance.

While this whale accumulation is promising, other whale cohorts have been selling.

Holdings in the 1k-100k BTC range have sharply declined over the past two weeks, indicating selling pressure from whales.

Bearish sentiment over the past few months is also evident in the adjusted SOPR. The value above 1 indicates that, on average, coins were sold at a profit.

Unfortunately, the declining aSOPR trend since March signals bearishness.

In summary, the decrease in long-term holder active sales and accumulation by larger whales is encouraging.

Despite these positives, Bitcoin may struggle to recover in August due to pervasive bearish sentiment in the market.

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