There may finally be light at the end of the tunnel for the Bitcoin price, as sales of the cryptocurrency begin to decline. So far, it appears that the large holders have been the main driving force behind the price decline, which could explain why the rally has been suppressed for so long. However, as these big investors start to scale back their sales, the Bitcoin price could see another recovery.
Bitcoin whales stop selling old BTC
According to a report posted by Santiment, the reason for the suppressed Bitcoin price over the past week can be traced back to large Bitcoin holders. These holders, who have a huge inventory of old coins, meaning coins that haven’t been moved in a long time, have started moving their coins after the price of BTC found its feet due to anticipation of the Spot ETF’s approvals .
Once these whales started moving these coins, there was a noticeable drop in the price of the asset, which can be linked to this movement. As these whales removed these coins from their wallets, the age of their BTC holdings decreased, indicating they were selling these older coins.
On average, their holding age went from about 640 days to about 624 days in the days following the SEC’s approval of the Spot ETF. The on-chain tracker suggests that this was a sign that the market was back in a bull market.
However, after doing this for about a week, these whales seem to have gotten to a point where they no longer move coins. “There are mild signs that this continued movement of older coins is finally over for the time being,” Santiment said.
While Santiment interprets this as a sign that the bull cycle may be over, there is also the possibility that these whales have stopped moving their coins in an attempt to wait for the price to recover. In this case, selling pressure will subside, giving Bitcoin room to regain a foothold.
BTC bulls fight to break $43,000 resistance | Source: BTCUSD on Tradingview.com
BTC is struggling against resistance at USD 43,000
Bitcoin price is currently struggling against the resistance reaching $43,000. Since last week’s crash, the bulls have been lagging behind as the bears have chosen this level to pitch their tents. The selling pressure also seems to be localized at this point, so this has become the next major level to beat.
If Bitcoin can overcome the USD 43,000 resistance, it could mark a return of the rally. At this point, $45,000 becomes the next major resistance as investors flood back in. However, failure to convert $43,000 into support could result in a further decline in the price.
Featured image from Leadership News, chart from Tradingview.com
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