There may finally be light at the end of the tunnel for the price of bitcoin, as sales of the cryptocurrency have begun to slow. So far, it appears that large holders have been the main driving force behind the price decline, which could explain why the rally has been suppressed for so long. However, as these large investors begin to reduce their sales, the price of bitcoin could be looking for another recovery.
bitcoin whales stop selling old btc
According to a report published by Santiment, the reason for the suppression of bitcoin price over the last week could be attributed to large bitcoin holders. These holders who have a massive stash of old coins, meaning coins that have not been moved in a long time, had started moving their coins after the btc price found its base due to anticipation around the approvals of the Spot ETF.
Once these whales started moving these coins, there was a definite drop in the price of the asset that can be linked to this movement. As these whales removed these coins from their wallets, the age of their btc holdings decreased, suggesting that they were selling these older coins.
On average, the age of their holdings went from about 640 days to about 624 days in the days following the SEC's approval of spot ETFs. The on-chain tracker suggests that this was a sign that the market had returned to the bull market.
However, after about a week of doing this, these whales seem to have reached a point where they are no longer moving coins. “There are slight signs that this continuous movement of older coins has finally been completed for the time being,” Santiment said.
Now, although Santiment interprets this as a sign that the bullish cycle may be over, there is also a possibility that these whales have stopped moving their coins in an attempt to wait for the price to recover. In this case, the selling pressure will ease, allowing bitcoin room to regain its footing once again.
<img decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2024/01/Bitcoin-Set-for-Recovery-as-Big-Whales-Stop-Moving-Old" alt="Tradingview.com bitcoin Price Chart” width=”3266″ height=”1530″ loading=”lazy”/>
btc bulls fight to break $43,000 resistance | Source: BTCUSD on Tradingview.com
btc struggles with resistance at $43,000
bitcoin price is currently struggling with the rising resistance of $43,000. Since last week's decline, the bulls have continued to lag as the bears have chosen this level to pitch their tents. The selling pressure also seems to be localized at this point, so it has become the next important level to overcome.
If bitcoin is able to overcome the $43,000 resistance, it could signal a return of the rally. At this point, $45,000 becomes the next major resistance as investors return in droves. However, failure to convert $43,000 into support could result in a further drop in price.
Featured image from Leadership News, chart from Tradingview.com
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