As the price of bitcoin continues on an upward trajectory that has taken it towards new all-time highs, surpassing $73,000 this week. With this surge, the vast majority of btc holders are currently making profits, and large whales are taking advantage of this to cash out some profits.
Big bitcoin Whale Selling Coins
Cryptoanalyst Ali Martinez turned to X (formerly Twitter) to share a chart that showed that large bitcoin whales were selling some of their coins. These large whales are those that have at least 1000 btc in their wallet, meaning that on the lower end, these whales have at least $73 million worth of bitcoin in their balances.
As the chart shows, there has been a decrease in the total amount of btc held by these large wallets and this means that they have been selling their coins. After the price first hit its all-time high of $69,000 in 2021, these whales started reducing their allocation.
The sale began in the month of February and continued until the month of March. During this time, their total balances have decreased, leading to a decrease in the number of wallets containing more than 1000 btc.
In February, there were around 2,150 wallets holding more than 1,000 btc. However, in March, this figure fell to 2,040 as whales trimmed their balances to secure some profits during the rally.
Impact of whale selling on btc price
Given the size of these wallets, the decision to sell them can have a notable impact on the price of btc. This is because they are able to dump a large amount of supply onto the market in a short time, and if there is not enough demand to absorb it, a price drop occurs.
Whale selling could be behind the sudden declines that have hit bitcoin as it has reached new all-time highs. An example of this was on Tuesday, March 12, when the price of bitcoin touched $73,000. What followed was a sudden drop that saw the price hit $68,000 before recovering.
So while whales dumping their holdings could have an adverse effect on the price, btc's performance in response to this sudden drop shows that there is enough demand to meet this supply. In the case of Tuesday, the price would quickly recover to reach a new all-time high of $73,600.
At the time of writing, btc price still stands at $73,000 with a 7-day increase of 10.49%.
<img decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2024/03/Bitcoin-Whales-Are-Cashing-Out-Amid-Momentum-Towards-New-All-Time" alt="Tradingview.com bitcoin Price Chart” width=”3286″ height=”1530″ loading=”lazy”/>
btc bulls reclaim control | Source: BTCUSD on Tradingview.com
Featured image from Techeconomy, chart from Tradingview.com
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