Bitcoin Sinks As Whale Exits: Is $53K The Next Stop?

• Metrics revealed that Bitcoin was overvalued.
• Continued price declines could push BTC back to $53k.

Bitcoin [BTC] Bulls managed to push currency prices last week by a promising amount. But the trend changed in the last few hours as Raja Mudra's daily chart turned red again. Notably, just before the price drop, a whale sold a large amount of BTC.

Are bitcoin whales sold?

Lookonchain recently posted a Tweet Revealing a move made by a whale. According to the tweet, a whale sold 500 BTC, worth $30.07 million, shortly before the BTC price dropped. This whale made three swing trades in BTC but only made money the first time; The latter two businesses were loss making.

Since the amount of BTC sold by whales was substantial, AMBCrypto examined other datasets to find out if the overall pressure of selling by whales was high.

According to our analysis of Glassnode's data, the number of addresses with 10 or more BTC balances has decreased in the past week. The decrease in the metric means that the big players in the crypto space were selling BTC, which may have caused the price of BTC to fall in the last 24 hours.

Source: Glassnode

To be specific, BTC is down more than 2% in the last 24 hours. At press time, it was trading at $58,789.75. Apart from this, data from HighBlock Capital revealed that whale exposure in the market has also decreased in the last 24 hours.

This was as Bitcoin's whale versus retail delta fell from 64 to 0. For starters, when the whale vs. retail delta drops to 0, it means that retail investors and whales have equal exposure to the market.

Source: Highblock Capital

However, whaling activity was not the only factor responsible for this price drop. AMBCrypto also increased BTC to NVT ratio. Generally, metric growth means that an asset is overvalued, often resulting in a price correction.

Source: Glassnode

What to Expect from Bitcoin

AMBCrypto then checked the weekly chart of the king of cryptos to see what could happen if the bears continue to lower the coin's price. According to our analysis, continued price declines could push BTC back to support near $53k.

Read on of bitcoin [BTC] Price forecast 2024-2025

A slip below support could see BTC drop to $43k. However, AMBCrypto Report Earlier that BTC price had strong potential to rise. One reason was Bitcoin's NVM ratio, which dropped.

If the BTC bulls take over, the coin will first approach its resistance near $61k. A successful breakout could keep BTC eyeing $68k next week.

Source: TradingView