- Bitcoin worth $290 million recently hit Kraken as whales shed their BTC holdings.
- As whales flooded exchanges with Bitcoin, BTC price continued its decline below $20,000.
- Analysts predict a bloodbath in Bitcoin as selling pressure on BTC increases.
Bitcoin price could crumble under selling pressure as the volume of BTC on exchanges climbs. Analysts reveal a bearish outlook on Bitcoin price.
Also read: Bitcoin and Ethereum holders alert: Merge coincides with creditor notice deadline for Mt.Gox
Bitcoin whales shed holdings, 15,000 BTC moved to Kraken
Bitcoins purchased by a large wallet investor eight years ago, worth $290 million, has hit exchange wallets. This inflow of 15,000 BTC to Kraken from a Bitcoin whale this week is a clear example of BTC shedding by whales.
Ki Young Ju, the CEO of CryptoQuant, commented on the rising Bitcoin volume across exchange wallets.
Eight-year-old BTC on the move
Long-term Bitcoin holders are shedding their holdings. Whales have moved their BTC to exchange wallets as the asset's price drops below the key $20,000 level.
The $20,000 level has a significance for Bitcoin as a key psychological barrier for the asset. It is close to Bitcoin's 2018 high and a price level at which most large wallet investors and institutions scooped up BTC.
Selling pressure on Bitcoin climbs
Bitcoin price traded close to the $20,000 level on September 6 before its decline. This is close to the asset's highest price point in the 2018 bull run. After hitting the $20,000 level, Bitcoin price declined 5% alongside an increase in the exchange whale ratio.
The “exchange whale ratio” is an indicator that measures the ratio between the sum of the top ten Bitcoin transactions to exchanges and the total exchange inflows. This makes it a key indicator of the Bitcoin price trend.
There was a sharp increase in the exchange whale ratio before a 5% decline in Bitcoin price on September 6. The steep increase indicates that whales are actively depositing Bitcoin across exchanges. The ratio is still high, and this is considered typical bear market behavior.
Exchange whale ratio
Analysts predict further decline in Bitcoin
Phoenix Ashes, a Bitcoin analyst and trader, believes BTC could decline to the $18,600 level. A reclaiming of the $19,500 low is key for Bitcoin's recovery in the long term.
Bitcoin-USDT price chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.