After a period of heightened volatility attributable to a broader market crash, Bitcoin appears to be regaining an upside trajectory as prices proceed to carry above the $102,000 mark. BTC could also be demonstrating the potential for a notable rebound, but negative sentiment persists amongst large Bitcoin holders.
Huge Sell-Offs Amongst 10-100 Bitcoin Holders
While Bitcoin moves toward a positive direction again, 10-100 BTC holders are offloading their holdings at an enormous scale. Axel Adler Jr, a technical expert and writer, reported the worrying shift in investors’ sentiment in an X post, sparking uncertainty about BTC’s price sustainability.
On-chain data shows that the balance of wallets containing 10-100 BTC has been steadily decreasing for nearly 2 years. This continued sell-off by this cohort is perhaps viewed as profit-taking or strategic repositioning as BTC builds momentum for an upswing.
In June 2023, the balance of those investors reached a peak of three.2 million BTC. Nevertheless, the quantity has decreased significantly by over 600,000 BTC, bringing the balance to 2.6 million BTC. Meanwhile, the common volume for this group of whale investors is 3.15 million BTC.
The expert highlighted that investors have been cashing out sums starting from $1 million to $10 million for the reason that downward trend. In consequence, a substantial variety of real millionaires have been generated out there over the past 6 months.
Historically, large investors’ behavior tends to influence BTC’s price trajectory and stability. Regardless that Bitcoin is recovering barely, a protracted sell-off by these investors may hinder growing momentum, causing a pullback toward key support levels.
Throughout the recent decline attributable to a bigger market drop, the general supply of BTC in loss has increased sharply. Axel Adler outlined that Bitcoin’s decline to the $98,000 price level led to a considerable increase in the entire BTC supply in loss to about 2 million.
This surge coincides with investor concerns concerning the open-source release of DeepSeek’s solution and inflated Artificial Intelligence (AI) firm valuations. With 2 million BTC now trading below their purchase cost, the event may signal heightened selling risks for the asset.
Nevertheless, overall supply in loss has now fallen to 738,000 BTC as prices slowly move upward, which is in keeping with the quarterly average for this indicator. The drop shows that the market has stabilized and the number has returned to normal.
BTC’s Price Facing Bearish Pressures
Examining BTC’s recent price motion, the flagship asset appears to be eyeing a consolidation phase because it hovers between $103,000 and $100,000. This movement is fueled by growing bearish pressure and investors’ waning sentiment, raising the likelihood for an prolonged consolidation phase.
With negative pressure mounting, Bitcoin is trading barely above $102,500, indicating a virtually 3% day by day decrease. BTC’s drop has sparked selling activity amongst investors, cited by a decline in its trading volume by over 44% up to now day.
Featured image from Unsplash, chart from Tradingview.com