Bitcoin whales dump $205M – Can bulls keep BTC above $79K?

Bitcoin [BTC] finally broke through the $80k resistance after repeated rejections at $79k over the past month. Notably, BTC jumped to $82k, levels last seen in late January, before retracing to $80k. Amid sustained upside volatility, market participants, especially whales, have significantly increased their activity on exchanges. 

In fact, Bitcoin’s Exchange Fund Flow Ratio jumped from 0.001 to 0.08, reflecting this intense exchange activity, suggesting increased activity on both the demand and supply sides, with whales actively involved. 

Bitcoin whales dump BTC worth $205.2M

According to Lookonchain, two whales sold 2,521 BTC worth  $205.26 million to take profits. These whales sold after holding BTC for less than a month, with one offloading after only five days. Their sales came as BTC crossed the $80k mark, locking in profits. Together, the two wallets secured a combined $13.5 million in gains. 

Traditionally, when BTC faces whale-driven selling pressure, the market cools, often leading to a price pullback if demand fails to absorb the selling pressure. 

Regardless of the price hike, some whales are re-entering the market, possibly in an attempt to chase the market. Onchain Lens reported that a whale withdrew 283 BTC worth $22.94 million from Binance. After the purchase, the whale now holds 1,283 BTC worth approximately $104.3 million. 

These conflicting market behaviors highlight the prevailing sentiment. In reality, whales have not been selling heavily. 

Looking at the Exchange Whale Ratio, the metric has declined for two consecutive days after rising earlier. At the time of writing, the ratio was spotted at 0.56, suggesting the price hike above $80k did little to drive whale profit-taking appetite.

What whale activity means for BTC

Bitcoin retraced from $82k as sell-side activity surged, especially from whales. The profit realization with BTC reaching January levels was followed across the market by participants who had held during a tough period. Despite that, the pullback remained minimal, as others, including whales, continued to accumulate above $80k.

For that reason, Bitcoin’s bullish structure remains intact. As such, the upside momentum remains relatively strong, as evidenced by the Stochastic Momentum Index.

At the time of writing, SMI at 61 suggested that buyers have shown greater determination to defend higher levels, although sellers are also actively attempting to retake control. With the upside still stronger, it reflects potential for extended upside.

In fact, the MaMA showed that the market was trading within a tight adaptive range, with positive feedback above $79k. Thus, with whales active on both sides, this indicator signals a potential for another sideways movement. Thus, the market could see another sideways movement with $79k as key support and $84k as immediate resistance.

However, if profit-taking intensifies, BTC is likely to pull back towards $77,716 and attempt another leg higher from here.

Final Summary

• Two Bitcoin whales sold 2,521 BTC worth $205.26 million, taking $13.5 million in profit. 
•  BTC’s bullish structure remains intact, trading within a tight adaptive range, while whale activity suggests a possible sideways move.