The post Will Bitcoin Price Crash? Whale Activity and Metrics Show Bearish Signs appeared first on Coinpedia Fintech News
Bitcoin (BTC), the world’s biggest cryptocurrency is poised for a massive price crash as whales and institutions have dumped notable BTC in the past 24 hours. On September 5, 2024, prior to the opening of the US Stock market, a smart Bitcoin whale dumped a significant 680 BTC worth $38.77 million to the Binance.
Whale Sell-off Millions Worth BTC
This smart whale purchased a significant 4,562 BTC worth $120.66 million at an average price of $26,449 in late 2022. However, he sold 3,938 BTC worth $181 million when BTC was trading near the $46,000 level. Combining all these sell-offs, this smart whale has made a profit of approximately $96 million.
The recent massive dump occurred when BTC was trading near the $57,000 level and formed a strong bearish candle on the four-hour time frame. Since this dump, the BTC price has been continuously falling, heading toward the $54,000 level. Additionally, dormant BTC holders have also become active, which is a potentially bearish sign.
A dormant address containing 35 #BTC (1,990,206 USD) has just been activated after 10.5 years (worth 21,632 USD in 2014)!https://t.co/8O2payiO3Q
— Whale Alert (@whale_alert) September 5, 2024
Bitcoin Price Could Fall to $54,000 Level
According to expert technical analysis, BTC looks super bearish. It is also forming a pattern where each recent high price is lower than the one before, and each low price is also lower. This suggests a downward trend. If BTC closes a four-hour candle below the $56,000 level, there is a strong possibility it could fall to the $54,000 level in the coming days.
Source: Trading View On-Chain Metrics Signaling Massive Sell-off
Besides this price action, BTC’s on-chain metrics data is also signaling a massive sell-off. CoinGlass’s BTC Long/Short Ratio chart is below one and currently stands near the 0.953 level indicating a bearish sentiment among traders. At present, 51.2% of top BTC traders are holding bearish short positions, while only 48% are holding long positions.
Source: CoinGlass
Additionally, BTC futures open interest has been continuously falling, indicating lower interest from top traders amid bearish sentiment. Since August 24, 2024, the BTC’s open interest has dropped from $34.72 billion to $29.33 billion.
Source: CoinGlass Bitcoin Price Momentum
At press time, BTC is trading near the $55,900 level and has experienced a price drop of 3.7% in the last 24 hours. Meanwhile, its trading volume has increased by 12% during the same period, indicating higher participation from traders amid this sharp price decline.
