The number of Bitcoin whales is rapidly declining to levels not seen since earlier this year. A BTC tracker has issued several bearish indicators suggesting a market exit for whales holding at least 1000 coins.
Bitcoin ( BTC ) market tracker Glassnode has issued several bearish indicators for the largest cryptocurrency on the market. It includes data pointing to a strong outflow of whales holding at least 1,000 BTC. In addition, exchange entries of more than 1.7 million coins are observed, the most since February.
High Bitcoin inflows to centralized exchanges suggest that whales are potentially exiting the market by selling coins. This perhaps as a possible way to prepare for a longer downtrend.
A prolonged downtrend
By May 7, the liquidations were probably executed by short-term holders who had accumulated coins at the end of January. Large accumulations were seen when prices hit a 6-month low around $34,800 .
Unfavorable market prospects based on hard data have pushed the Fear and Greed Index down to 11, the ” Extreme Fear ” region. The index rates the overall amount of fear or greed among Bitcoin investors.
Despite the bad sentiment, daily BTC transactions still do not appear to have been negatively affected. According to YCharts data, 233,892 daily transactions worth approximately $30 billion were processed on May 8. This has been the average of Bitcoin transactions since the beginning of the year 2022.
Glassnode chain expert analyst ” Checkmate ” tweeted on Sunday “Many of you are waiting for Bitcoin ‘s ‘capitulation fuse’.” The expert’s tweet partially confirms the notion that investors expect BTC to continue to decline.
A capitulation wick is usually characterized by a relatively long, sudden, and catastrophic price decline. Such as the one witnessed on March 12, 2020, when BTC dropped 43% in one day, around $4,600 .
As is often the case with cryptocurrencies , their ups and downs are actually multifactorial in origin. During the week, a rise in interest rates in the United States was announced. This caused immediate declines not only in crypto, but in the entire stock market. It was a few hours later when BTC had its first drop of the week, of 10% of its value.
Bitcoin lost more than 10% of its value in three days
Also as is often the case with volatile financial assets, no one knows for sure what will happen now. Sharat Chandra , vice president of research and strategy at Earth ID, said his outlook would be for bitcoin to be somewhere between $30,000 and $32,000 .
Bitcoin is currently down 10.80% in the last seven days, trading around $33,000 .
Breaking through resistance at $37,000 could mean further declines in value for bitcoin, according to Rick Bensignor, CEO of Bensignor Investment Strategies .
One of the biggest problems, says Bensignor , is that at the moment there is no indication that a strong buying wave is approaching, which due to its demand effects will send the price of bitcoin in the opposite direction. From his perspective, cryptocurrencies could still rally, but they would do so only if the broader market does so next week.
The price target for Bitcoin is now $29,000 . For his part, Michael Novogratz , CEO of Galaxy Digital, said that there is less and less correlation between bitcoin and stock market movements. Although he said that the process is gradual and as long as it does not materialize there will be ” more pain to come “.
Market analyst Caleb Franzen tweeted to his 11,000 followers on Sunday that investors should look for markets that continue to trend down. Based on his analysis, he suggests that we will remain “short-term bearish”. He also concluded the same as the CEO of Galaxy Digital , stating that “more pain seems worth waiting for.”