Bitcoin is on an upward trajectory this week, with its price heading towards a key $110,000 mark.
But maintaining this momentum can prove to be as challenging as the last two months. Whales appear to be profiting and could affect Bitcoin’s ability to maintain these profits.
Bitcoin Zilla is very popular
The whale activity has recently been notable, with addresses held between 1,000 and 10,000 BTC, and a significant portion of its holdings have been sold.
In the past week alone, these whales have sold over 40,000 btc of BTC, worth over $4.3 billion. As these large holders may be uncertain about the sustainability of the rally, this sales pressure is likely a response to Bitcoin’s recent price hike.
This type of sale by whales can be harmful to the price of Bitcoin as it exerts bearish pressure when such a large amount is being sold at once. The impact of whale sales could prevent Bitcoin from maintaining its upward momentum.
In addition to whale sales, lively metrics tracking the frequency of Bitcoin transactions have seen a sharp rise this week.
Typically, a growing vibrancy indicates that long-term holders (LTHS) are moving assets instead of holding them. This shift suggests that LTHS is choosing to sell its holdings rather than reflecting whales’ behavior, rather than accumulating.
LTH, which has a major impact on the Bitcoin market, can have a significant impact on price movements. If they continue selling, it could lead to further volatility and potentially limit Bitcoin’s price recovery.
Is the BTC price above $110,000?
Bitcoin prices have risen 7% in the last 24 hours, reaching $108,145 at the time of writing. Cryptocurrency is currently looking to establish $108,000 as a solid support level.
However, continuous sales by whales and changes in LTH behavior can lead to below this level.
If Bitcoin can’t secure $108,000 in support, the next level of support could be around $105,622, which could further decrease and push the price down to $102,734.
The impact of whale sales and LTH behaviors can drive this downward movement as market sentiment becomes more bearish.
Meanwhile, if institutional demand continues to rise and outweigh sales pressures from whales and LTHS, Bitcoin could break through $109,476 in resistance.
A strong push past this level will pave the way for Bitcoin to reach $110,000.
Disclaimer
In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. Although Beincrypto is committed to accurate and unbiased reporting, market conditions are subject to change without notice. Always carry out your research and consult with an expert before making any financial decisions. Please note that our terms and conditions, privacy policy and disclaimer have been updated.
