Positive movements are unfolding in the general market again, triggering a brief upswing in Bitcoin’s price above the $96,000 level. Even though BTC is slowly regaining its upside trajectory, certain investors are pessimistic about its price prospects as they offload a significant portion of their holdings.
Selling Pressure Mounts As Mid-Level Wallets Sell In Bulk
In a notable shift in investors’ sentiment toward Bitcoin, wallet addresses between 10 and 100 BTC have embarked on a selling spree. Seasoned technical expert and author at the CryptoQuant platform Axel Adler Jr highlighted the negative development in his recent research.
Mostly considered as sharks, this group of medium-sized holders seems to be offloading their holdings at a rapid rate. The surge in selling activity, which comes in light of heightened market volatility, may be a sign of profit-taking or portfolio rebalancing.
Data shared by Adler shows that the wallet addresses with 10 to 100 BTC have been actively selling their coins for more than a year, indicating waning confidence. Furthermore, the overall balance of these mid-sized investors has declined by over 370,000 BTC during this period.
With this cohort selling rapidly, it could trigger a drawdown of its recent upside strength, increasing the potential for an extended decline. However, a shift in their behavior may fuel BTC’s upbeat momentum in the near term. In the meantime, monitoring the impact of the selling pressure on Bitcoin’s price trajectory is crucial as it might shape short-term market dynamics.
While wallets holding 10-100 BTC have been selling their holdings, larger wallets containing 100-1,000 BTC have persistently increased substantially. On-chain data reveals that these big investors have been accumulating the flagship asset over the past 1 year.
Adler noted that wallets with larger balances between 100 and 1,000 BTC saw a rise in their overall balance by 610,000 BTC. This huge accumulation indicates that institutional players or high-net-worth individuals might be taking advantage of price dips to increase their holdings.
Typically, the trend is viewed as a potential bullish signal, reflecting robust faith in Bitcoin’s prospects in the long term in spite of recent price volatility. When large-scale investors continue to acquire BTC, there are speculations that a major upswing might be imminent.
Is BTC Regaining Its Upside Trajectory?
Bitcoin experienced a resurgence to key resistance levels on Tuesday, demonstrating the capacity for extended growth. Several factors, like the inauguration of Donald Trump into the White House as the new US President and a liquidity sweep, are considered to have triggered the recent upswing.
Presently, BTC has surged past the $97,000 threshold, a level that has previously sparked upside strength. According to the informative platform IC News, this growth is driven by a liquidity sweep at the $96,000 mark. The platform also highlighted other liquidity pockets at $99,000 and $90,000, which might impact BTC‘s price movement in the coming days.