Giant whale sells off 2 billion US dollars of Bitcoin, will the bull market cool down? calm! The truth is not that scary
The cryptocurrency market has been booming recently, and many digital assets have been experiencing impressive gains, but you might not expect that there are actually investors selling their Bitcoin (BTC).
According to an article by cryptocurrency analyst Ali Martinez on December 22, over the past week, large Bitcoin holdings investors (commonly known as "whales") sold approximately 50,000 BTC, which is worth more than 100,000 BTC at current prices. $2 billion.
This may have some investors worried that Bitcoin’s bull run is coming to an end. However, the truth may not be that serious.
Profit-taking may be behind the sell-off
Considering Bitcoin’s massive rise in recent weeks, one possible reason behind these huge sell-offs is investors taking profits.
The surge in Bitcoin prices has attracted the attention of institutional and retail investors, prompting some investors who have held Bitcoin for a long time to choose to cash out and make profits at this time. However, the exact motivations behind these whale transactions remain speculative.
Supporting this view, Bitcoin’s profitable supply ratio is currently as high as 89%, which is a very positive sign that market sentiment remains positive as the year approaches. According to a Dec. 21 article from Santiment, when this indicator is in the 40-70% range, it typically creates the potential for further upside.
Bitcoin Price Analysis
As of latest news, Bitcoin is trading at $43,517, down 0.62% in the past 24 hours. However, the 7-day and 30-day charts are up 3.07% and 18.79% respectively.
Bitcoin prices have surged over the past year, growing by a staggering 159%. Notably, it surpassed 72% of the top 100 cryptocurrencies over the past year.
Furthermore, Bitcoin is currently trading above its 200-day moving average, which is a positive sign in technical analysis. Bitcoin has risen on 18 of the past 30 days, accounting for roughly 60% of the observation period.
Summarize:
While "whale" selling may cause some concern, the reason behind it may not be bearishness but profit-taking. Bitcoin’s price remains strong and technical indicators are showing positive signs.Of course, the cryptocurrency market is highly volatile, and investors should conduct their own research and exercise caution before making any decisions.
