Bitcoin recently reached a new all-time high (ATH) of $124,474, before experiencing a 3.5% drop in the last 24 hours.
This drop follows a trend observed by CryptoQuant data, indicating that whales (large investors) may be selling their positions. The selling activity is directly affecting the price of Bitcoin as it moves away from the ATH.
Bitcoin whales are capitalizing
In the last 24 hours, Binance recorded a significant increase in Bitcoin deposits, with 6,060 BTC, valued at approximately $722 million, added to the exchange's balance. This increase mainly comes from whales, according to CryptoQuant data.
The analyst JA Maartunn from CryptoQuant highlights that recent economic reports, including US unemployment claims, PPI, and retail sales, are influencing whale behavior.
"It is likely a reaction to rising prices and positioning ahead of the economic events this week," Maartunn told BeInCrypto.
The increase in Bitcoin balance on Binance suggests that whales are acting amid uncertain economic data. These behaviors tend to negatively impact the price, as large transactions usually signal a shift in sentiment.
Bitcoin Inflow to Binance Exchange. Source: CryptoQuant
The Net Position Change of HODLers is a key metric that tracks the behavior of long-term investors (LTHs). Recently, this metric has moved away from the bearish zone, signaling a reduction in selling pressure.
This change in HODLer behavior is a positive sign, suggesting that key Bitcoin investors are holding their positions. Despite the recent ATH and subsequent drop, LTHs remain firm, which may help stabilize the market and support a potential recovery. This reluctance to sell may ultimately contribute to a move back to higher price levels, such as $122,000.
Net Position Change of Bitcoin HODLers. Source: Glassnode
BTC price holds steady
The price of Bitcoin is currently at $119,186 after falling below the key level of $120,000. The price has dropped from the recent ATH of $124,474, showing some volatility. Despite this drop, Bitcoin is maintaining support above $119,000, suggesting that the recent decline may be a short-term correction.
Given the mixed market sentiment, Bitcoin may potentially reclaim $120,000 as a solid support level. If buyers can hold this level, Bitcoin could recover from the recent drop and advance towards $122,000.
Bitcoin Price Analysis. Source: TradingView
However, if selling pressure increases, the price of Bitcoin may fall below the support level of $117,261. A sharper decline could push the price down to $115,000 or lower, which would invalidate the optimistic outlook and indicate further market weakness.
The article Why are whales moving Bitcoin to Binance? was first seen on BeInCrypto Brazil.
