TL;DR
- The recent whale activity suggests BTC’s price may continue to decline in the following days.
- However, analysts remain optimistic, whereas the asset’s RSI has neared oversold territory.
More Troubles Ahead?
Bitcoin (BTC), like the rest of the cryptocurrency market, has experienced a substantial correction over the last several days. Its price is down 7% on a two-week scale and currently struggles to remain above $110,000.
Bulls expecting a resurgence in the near term may have to wait a bit longer due to two important bearish factors. The first one is the massive selling coming from whales. The popular X user Ali Martinez revealed that such large investors have offloaded 50,000 BTC (worth over $5.5 billion) in the past 14 days.
Sell-offs of that type increase the amount of assets available on the open market, which could lead to a further downtrend if demand doesn’t react accordingly. Moreover, those actions may spread panic among smaller players and prompt them to cash out as well.
The second element involves the moving of 20,000 BTC (with a USD equivalent of around $2.2 billion) from self-custody methods to crypto exchanges. The transfer occurred within the last two weeks and typically leads to increased selling pressure.
Meanwhile, the spot BTC ETFs recently saw their longest outflow streak of six market days in several months. This suggests a decline in investor interest and may also contribute to further market pullback. On the other hand, in previous instances, such outflows have pointed to market bottoms that were later followed by rallies.
The Bullish Perspective
Despite the aforementioned factors, BTC remains the subject of optimistic forecasts with many analysts suggesting that the bull market is far from over. X user CRYPTOWZRD thinks “a quick bullish reversal” from current levels could push the price to $120,000 and even a new all-time high of $131,000.
The asset’s Relative Strength Index (RSI) also signals that a possible rebound might be on the horizon. The technical analysis tool measures the speed and magnitude of recent price changes, ranging from 0 to 100. Ratios around and under 30 indicate that BTC could be oversold and due for a rally, while anything above 70 suggests a correction is underway. As of this writing, the RSI stands at around 35.
