Bitcoin (BTC) is currently at a point that most investors will not be unhappy with. Nevertheless, remarkable movements can be observed among the whales. These large holders sold around 50,000 BTC in a short period of time, which is worth around $2.20 billion. This phenomenon has caused the community and investors to speculate about the future direction of BTC price. Will we see a major correction or crash in the near future?
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The reason for the massive BTC sales
It may seem illogical for whales to sell during an uptrend. However, the driving force behind this selloff could be profit-taking. After the value of Bitcoin rose significantly, some long-term holders decided to cash out their profits. While this can cause a sudden drop in price, it is not necessarily an indicator of an impending crash or the end of the uptrend. However, there is a real chance that the Bitcoin price will decline as a large group of whales cash in on their profits.
Market analysis of Bitcoin
Right now, we can see that a whopping 89% of all Bitcoins in circulation are now generating profits, a sign of strength and confidence. At the same time, this percentage is very high, as noted by the blockchain analysis company Santiment. They therefore urge caution with regard to X, as a further increase is only likely once this share has fallen to 30 to 70%.
📊 $BTCThe offer-to-earnings ratio is 89%, a figure to be cautious about heading into the new year. Further increases are more likely if this number is closer to the 40-70% range. In the meantime, $MATIC & $LTC Sit more comfortably in an opportunity zone. pic.twitter.com/kBPTDyi9gz
– Santiment (@santimentfeed) December 21, 2023
While whale selling can cause short-term uncertainty, it is important for investors to see the bigger picture. The cryptocurrency market is volatile and subject to rapid changes. Technical analysis and market sentiment indicators provide valuable insights, but it remains important to also keep an eye on macroeconomic factors and global financial trends.
Furthermore, a correction would not be a catastrophe at all. Price curves actually never rise in a straight line, but rather gradually. Ultimately, only time will tell whether BTC is due for another rise or whether we should take a step back first.
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