Bitcoin whales remain weak: BTC absorbs sell pressure despite risks

A Bitcoin [BTC] holder of seven years took profits last week, according to data from Capriole Investments. The selling of $271 million in BTC came on Sunday, the 5th of April.

A similar-sized whale dumping of Bitcoin was seen in January. A $280 million wave of selling on the 10th of January was followed by a deep price correction below the $90k level a few days later.

The news of whale selling came alongside institutional holders opting to sell Bitcoin as well. AMBCrypto reported that the Bitcoin mining firm Cango (CANG) had sold 2,000 BTC in March as part of a “planned transition into energy and AI infrastructure.”

BTC buyers are doing a good job of absorbing the supply so far

Despite the selling pressure, the price of Bitcoin continued to float in the $65k-$72k area over the past month. The range formation in recent weeks and the local high at $76k were stern obstacles to the bulls.

The 30-day moving average of the net volume flow into and out of exchanges has been negative since the 3rd of March. This indicated accumulation as the price settled into a range and was an encouraging sign after the volatility of February.

Investors need to keep an eye on this metric. A slowdown in the accumulation trends combined with bearish price momentum in the lower timeframes would be a warning that BTC might be readying for another move downward.

Interestingly, the recent wave of whale selling was juxtaposed by the falling activity among large BTC entities. The relative activity metric tracks the momentum of activity from small and large entities.

The activity from large entities has been falling since the early February price crash. It has seen occasional upticks, such as the one during the mid-March rally.

Overall, the decreased activity from large market participants suggested bear market conditions and usually accompanies downtrends or consolidations.

Therefore, though the 30-day moving average suggested the recent selling was being absorbed, it can change quickly.

A wave of panic can spark a price capitulation and cause the larger entities to sell en masse, massively raising the pressure on the buyers to maintain the current range.

Final Summary

• A wave of selling from the OG Bitcoin whales last week measured $271 million, but the price rallied above the $70k psychological level since then, showing supply absorption.
• Since March, the activity levels from large entities have been falling, showing little demand from the whales.