Bitcoin traders have recently hit some snags in their efforts to push the price back up to $100,000. As the inflation rate does not seem to slow down, it has caused some panic among BTC traders. Currently, there’s an increase in activity in the spot market despite the consolidation. This week, several large Bitcoin holders moved their assets, increasing the pressure to sell. Although there have been some small signs of recovery in the last 24 hours, the momentum has weakened, causing traders who bet on price increases to back off.
Whales Might Be Preparing for Heavy Selloff
Over the past 24 hours, Bitcoin’s price has been quite unstable, even though it has stayed within a specific range. According to Coinglass, there were total liquidations of about $19.2 million in Bitcoin during this period. This included $8.16 million from buyers closing their positions and $11 million from sellers.
While Bitcoin remains below the $100,000 level, there’s been a notable increase in large transactions. Data from IntoTheBlock indicates that the volume of large transactions in USD climbed from a low of $35.56 billion to a recent high of $56.64 billion, pointing to increased activity from major Bitcoin holders. This trend of large holders moving their assets to exchanges, primarily for selling, could potentially impact Bitcoin’s future price direction, as the netflow data suggests.
On-chain data indicates that the exchange whale ratio has been surging for over the past few days. This month, there has been a noticeable increase in activity, accompanied by growing bearish sentiment in the cryptocurrency market. In December, retail investors primarily drove the inflow to exchanges as they took profits. This year, institutional holders have dominated, moving their assets to exchanges in an effort to cut their losses.
The large holder netflow to exchange netflow ratio has surged to the positive ratio and is currently at 0.22%. As the netflow rises, it suggests that whales are transferring their assets to exchanges and it is a strong signal that sales are likely forthcoming.
What to Expect from BTC Price Next?
Bitcoin’s price is finding it challenging to hold buyer interest and is showing a bearish trend after failing to break past $98,000. However, buyers are currently aiming for a surge above the descending trend line. Currently, Bitcoin is trading at $97,301, marking a modest increase of 1.5% in the last 24 hours.
The BTC/USDT pair is encountering resistance around the $98,000 level, where sellers are actively resisting any upward movement. If Bitcoin can maintain a position above this resistance, it might create an opportunity for buyers to drive the price towards $100,000.
On the flip side, if Bitcoin continues a trade below the EMA20 trend line on the 1-hour chart, it may face significant selling pressure that could push the price below $94,000 and possibly lead to retesting the $91,000 mark.
