Bitcoin is moving back and forth along the streak between $22,500 and $23,500 with bears increasing their efforts during today’s trading session. The cryptocurrency has seen an increase in selling pressure from bitcoin whales.
At the time of writing, Bitcoin (BTC) is trading at $22,900 with a gain of 2% in the last 24 hours and a loss of 4% over the past week. In the top ten in terms of market capitalization, BTC lags behind while Ethereum, Binance Coin, Cardano, and Polkadot manage to stay in the green with profits during these periods.
data from material indicators, subscriber By a pseudonymous user, it indicates a shift in market dynamics for lower time frames. As shown below, Bitcoin investors with sell orders ranging from $100,000 to $1 million have started offloading their coins into the market.
The whale that wanted to get out was controlling the market.
Purple ($100 thousand – $1 million) took these steps 👇
1. Bids below to support the price
2. Buying the market to raise prices
3. The price has been pushed up in orders
4. Heavy selling in the market
5. The bids are cleared below
– Marton (@JA_Maartun) August 5, 2022
As a result, the price of BTC has lost its momentum and may see further losses if these investors continue to exert pressure over the coming days. One analyst at Material Indicators noted that investors with these orders (in purple on the chart above) had the “most influence on the price of Bitcoin.”
Selling pressure for these investors is preceded by a decrease in the liquidity of the bid. In other words, when bitcoin whales began to flood, there were fewer buy orders that could act as support in the event of more losses.
This leaves the price of BTC vulnerable to volatility and with the weekend approaching, the cryptocurrency appears to be preparing for potential sudden moves in either direction. The analyst at Material Indicators said the following regarding this possibility while sharing the chart below:
Expect more volatility over the weekend. If a bear market rally can push BTC above 25K, there will not be much friction in the 26-28K range. Losing the trend line would be bad for bullish hopes and dreams. Line blocker (…).
Long-term Bitcoin holders take profits
In support of the above, Glassnode sequential analysis company records Increasing selling pressure from long-term bitcoin holders. These investors have been reaping profits after a short accumulation period.
The high recovery witnessed in the cryptocurrency market gave these investors an opportunity to take profits and break even with their initial investment:
The recent rise has given long-term holders the opportunity to exit a fraction of their holdings at their own cost, at prices that are essentially their money back.