Crypto Whales Reportedly Selling Bitcoin, Analyst Points to Potential Market Shift
James Van Stratton, an analyst at CryptoSlate, has reported that massive cryptocurrency whales are selling Bitcoin.
Van Stratton shared a chart illustrating the dynamics of Bitcoin price changes and the coin accumulation index. According to the chart, the majority of BTC owners have been accumulating the cryptocurrency since late October, indicated by the dark blue rectangles on the upper graph, representing the activity of traders from different groups based on the amount of coins they hold.
An intriguing observation is that mega whales, classified as owners of over 10,000 Bitcoins valued above $427.5 million at the current rate, started divesting their coins on December 10, just before the cryptocurrency’s price dropped by 9%. After Bitcoin’s price corrected and stabilized above the $42,000 mark, these large holders continued to sell more BTC.
The behavior of significant whales may suggest that the Bitcoin price has reached a local peak and is likely to decline in the near future. However, James raises the question of whether other market participants can compel these multi-millionaires to buy Bitcoin at a higher price than the one at which they sold their coins.
Van Stratton describes the current market situation as a battle between whales and retail investors.