- Bitcoin declined by 12.90% over the past month.
- The aggregated amount of Bitcoin held by whales hit a 6-year low.
As Bitcoin [BTC] struggles on its price charts, it seems whales have also started to sell. According to recent data from IntoTheBlock, Bitcoin’s supply held by whales has been on a decline.
Source: IntoTheBlock
As such, the aggregate amount of BTC held by large holders has declined to its lowest levels since 2019. This decline has marked a six-year low.
When supply held by whales hits such lows, it suggests a significant shift in market dynamics. This implies that whales are actively in the market selling.
With whale selling, it could imply institutions are selling for operational cost as prices decline, or large holders, are entirely closing their positions waiting for other buying opportunities.
Notably, this change in supply dynamics could imply several things. First, it suggests that whales are redistributing to retail investors, which might result in more decentralization, reducing whale-educed market trends.
Source: CryptoQuant
As such, if whales are selling, while the market demand still remains relatively high, it suggests that supply is getting to the broader base of investors.
Looking at Bitcoin’s exchange netflow, it suggests that the market demand remains high. As such, the market is experiencing more outflows than inflows.
This suggests that while whales have sold, the rest of the market still has a relatively high demand for the asset, which is critical for price stability.
BTC’s next levels
With whales turning to sell, the question is, what’s next for BTC price movement?. For starters, although whale supply has declined, Bitcoin is not experiencing high selling pressure.
Source: Cryptoquant
We can see this as the fund flow ratio to exchanges has also been declining over the past week.
When the fund flow ratio declines, it suggests that there are fewer exchange deposits, thus current holders are not planning to sell. This signals long-term holding behavior as investors continue to accumulate their BTC.
Therefore, since whale supply is declining meaning they are selling while other investors continue to hold, it suggests that markets will continue to consolidate as buyers absorb selling pressure without driving prices up.
Consolidation here is most probable, as buyers are not strong enough to absorb the selling pressure and still push prices to higher resistance.
Source: Alphractal
If consolidation is positioned to continue, BTC must consolidate above $84,640 as per Alphractal.
If the price consolidates above this level, it is likely to form a local bottom before pushing to new all-time highs in the near future.
However, if Bitcoin stays below $84K for several days, the next target on the CVDD Channel is $64,700, which coincides with the April 2021 all-time high.
