Bitcoin whales are selling into the market strength, raising questions about whether the premier asset will sustain its recent price resurgence.
At the time of writing, Bitcoin ($BTC) has crossed $78,000, building its newfound momentum. However, the sustainability of this move has come into question, following a recent disclosure of the on-chain activities of large holders.
Key Points
- At the time of writing, Bitcoin has crossed $78,000, building its newfound momentum.
- Data shows that whales holding at least 100 $BTC have ramped up inflows into exchanges, suggesting they are taking profits.
- Such selling activities have not been this notable in several weeks and could impact the sustainability of this recovery move.
- The Bitcoin rebound has also sparked a broader market move, with Ethereum rallying 6.3% to $2,447 and $XRP by 6.5% to $1.49.
- Analysts expect further upside for Bitcoin in the near term.
Bitcoin Whales Move Stash to Exchanges Amid Rebound
J. A. Maartunn, a prominent analyst and CryptoQuant’s verified author, highlighted an increase in exchange inflows as Bitcoin’s price rose. He noted that whales holding at least 100 $BTC have ramped up inflows into trading platforms following the price resurgence, suggesting they are taking profits.
The analyst used the Bitcoin Exchange Inflow for Spent Output Value Band for all exchanges to identify this trend. According to the shared chart, a notable spike was seen among holders with 100 to 1,000 $BTC, marked in yellow.
While a similar spike was seen with holders holding 1,000 to 10,000 $BTC, those with 100 to 1,000 $BTC made a more significant move. Notably, while movement to exchanges does not translate into sales, it adds renewed pressure on the asset’s price and dampens market sentiment.
Maartunn highlighted that such selling activities have not been this notable in several weeks. According to him, this activity weighs on the market and could impact the sustainability of this recovery move.
Bitcoin Blows Past $78,000 Regardless
However, $BTC has continued to show strength despite these potential sell-offs. At press time, it has reached an intraday high of $78,120, a price level last seen on February 6. While its continuity remains a concern if such selling activity continues, its response so far signals strong market momentum.
The Bitcoin rebound has also sparked a broader market move, with Ethereum rallying 6.3% to $2,447 and $XRP by 6.5% to $1.49. In general, the broader market has rebounded by 4.9% in the past 24 hours to $2.64 trillion.
Meanwhile, analysts expect further upside for Bitcoin in the near term. The Crypto Basic reported that $BTC could reach $80,000 to $85,000 before the end of April. The move, however, depends on a continued show of strength as seen recently, even in the face of building selling pressure.