On-chain data reveals significant selling activity by Bitcoin whales. This movement potentially contributed to BTC's recent bearish trend, at least that seem to be the most plausible explanation.
Analyst Ali highlighted the trend on social media platform X.
He referenced Santiment's "Supply Distribution" metric. This indicator tracks Bitcoin holdings across various wallet groups, focusing on wallets holding between 1,000 and 10,000 BTC. That's the guys we usually call the whales.
At current rates, these holdings range from $55.4 million to $554 million. Such large positions can significantly influence market dynamics.
The data shows a downward trend in whale holdings over the past month. These investors reduced their positions by 30,000 BTC. A whopping amount of money to say the least, because it equates to over $1.65 billion at current prices.
The sell-off intensified in recent days. And this accelerated selling coincides with Bitcoin's recent price drop. It suggests whale activity may be partially responsible for the market downturn. Simply put, whales sell because they suddenly turned bearish, and thus the market is getting a strong bearish sentiment.
Whether this selling trend will continue remains uncertain. More whales could potentially sell if market sentiment remains negative.
Conversely, a reversal in whale behavior could signal a potential market bottom. This would indicate whales view current prices as attractive entry points.
Bitcoin's price has fallen over 10% in the past week. It now trades around $55,000, a level not seen since late February.