Bitcoin moved back and forth along the line between $22,500 and $23,500 as the bears increased their efforts during today’s trading session. The cryptocurrency has seen an increase in selling pressure from BTC whales.
At the time of writing, Bitcoin (BTC) is trading at $22,900 with a profit of 2% over the past 24 hours and a loss of 4% over the past week. In the top 10 by market capitalization, BTC lags while Ethereum, Binance Coin, Cardano, and Polkadot managed to stay in the green with profits over these periods.
Data from Materials Indicators, share by a pseudonymous user, signaled a change in market dynamics for short timeframes. As seen below, Bitcoin investors with sell orders of around $100,000 to $1 million have started unloading their coins into the market.
A whale that wants out controlled/controlled the market.
Purple ($100,000-$1M) took these steps 👇
1. Offers below to support the price
2. Market purchases to drive up prices
3. The price has increased in requests
4. Intensive market selling
5. Auctions below are cleared
— Maartunn (@JA_Maartun) August 5, 2022
As a result, the price of BTC has lost momentum and could suffer further losses if these investors continue to exert pressure over the next few days. An analyst from Material Indicators noted that investors with these orders (purple in the chart above) had “the most influence on the price of Bitcoin.”
These selling pressures from investors are preceded by a reduction in the liquidity of offers. In other words, as the bitcoin whales started to pour out, there are less POs that could serve as support for further losses.
This leaves the price of BTC susceptible to volatility and heading into the weekend, the cryptocurrency looks poised for potential sudden moves in either direction. The Material Indicators analyst had the following to say about this possibility while sharing the chart below:
Expect more volatility over the weekend. While the bear market rally can push BTC above 25,000, there isn’t much friction between 26,000 and 28,000. Losing the trendline would be bad for bullish hopes and dreams. Pay attention to the line (…).
Long-term Bitcoin holders profit
In support of the above, on-chain analyst firm Glassnode recordings an increase in selling pressure from long-term Bitcoin holders. These investors took profits after a brief period of accumulation.
The relief rally experienced by the crypto market provided these investors with an opportunity to take profits and break even with their initial investment:
The recent rally has given long-term holders an opportunity to exit a fraction of their holdings at their cost, at prices that essentially get their money back.