Analysts: Major Bitcoin Whales Are Still Taking Profits
- According to CryptoQuant, bitcoin’s fall was driven by activity in the futures market.
- Whales with a balance of more than 1000 BTC continue to sell assets.
- Retail investors are recording losses.
- Middle cohorts are showing accumulations but are unable to stabilize the situation.
The recent drop in bitcoin was caused by activity in the futures market. This was stated by CryptoQuant.
They emphasized that futures positions were the catalyst for the fall. The closing of long positions, pressure in the futures market and a cascade of liquidations intensified the downward dynamics. This turned a normal correction into a sharp price drop, CryptoQuant added.
In addition, the experts analyzed the actions of major players after the collapse of the asset below $80,000.
According to their data, the largest cohorts (those holding more than 10,000 BTC and 1,000-10,000 BTC) continue to sell off bitcoins, indicating profit taking and reduced institutional exposure.
Retail investors holding 0 to 10 BTC are also reducing positions.
However, addresses with a balance of 100-1000 BTC are gradually accumulating the asset, while owners of 10-100 BTC are showing a steady increase. However, these volumes do not compensate for the sales of large players, analysts noted.
Experts also noted that the last 48 hours demonstrate a potential local bottom. According to them, the recovery to $88,000 indicates a possible change of trend, but a full recovery is possible only if players with 1,000-10,000 BTC on their balance return to accumulation.
Santiment analysts record a decrease in the number of small addresses and an increase in the number of wallets with balances over 100 BTC. This indicates the capitulation of retail investors – a typical phenomenon in the final phases of the downtrend, experts noted.
Recall, earlier the Incrypted team broke down the reasons for the fall of bitcoin:
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