- Bitcoin’s uptrend seems to be reaching a point of exhaustion.
- Whales have been selling in preparation for a pullback.
- The $45,230-$46,560 resistance level will decide where BTC goes next.
Share this article
On-chain metrics have registered a spike in profit-taking behind Bitcoin following an impressive bull rally. If sell orders continue to pile up, BTC could be poised to retrace.
Bitcoin Whales Book Profits
Bitcoin could be due for a big correction.
The leading crypto asset has posted significant gains over the past three weeks, gaining 17,000 points in market value. Bitcoin saw its price rise by 57% from a low of $29,800 on Jul. 21 to recently hitting a high of $46,800. Now, investors appear to have started booking profits.
Behavior analytics platform Santiment reveals that addresses with 100 to 10,000 BTC have significantly reduced their holdings. In the last four days alone, these whales sold over 40,000 BTC, worth roughly $2.07 billion.
The sudden spike in profit-taking comes at a time when Bitcoin has struggled to slice through a significant resistance barrier.
IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model shows that the supply zone between $45,230 and $46,560 has prevented Bitcoin from advancing further. Around this price level, nearly 660,000 addresses have previously purchased over 440,000 BTC.
Holders within the $45,230-$46,560 range who have been underwater may be trying to break even on their positions, slowing down the uptrend. If this selling pressure continues, Bitcoin could turn around.
The IOMAP reveals that the first-ranked cryptocurrency could find support between $42,500 and $43,850 in the event of a correction. This support level could keep falling prices at bay as 170,000 addresses bought more than 400,000 BTC here. But a break of this demand wall could lead to a downswing toward $40,300.
Investors who remain bullish despite the sell signals popping up should pay close attention to the $45,230-$46,560 resistance level. A decisive move above this supply zone could see Bitcoin rise toward the next interest area between $49,300 and $50,700.
Bitcoin at Make-or-Break Amid JPMorgan Fund Reports
Institutional interest in Bitcoin is on the rise, with JPMorgan reportedly looking to launch an in-house Bitcoin fund for wealthy clients. Meanwhile, the charts show that BTC is at a…
How to Trade Using the Inverse Head and Shoulders Pattern
In stock or cryptocurrency trading, you may have heard of the term “inverse head and shoulders.” Also known as the “head and shoulders bottom” formation, the inverse head and shoulders chart pattern can…
Grayscale Advances Bitcoin ETF Plans With New Hire
Grayscale Investments has hired a new global head of exchange-traded funds to lead the conversion of the company’s GBTC trust into a Bitcoin ETF. Grayscale Hires Global Head of ETFs…