Bitcoin is gearing up for a potential recovery, with signs indicating a slowdown in selling activity among large holders. The prolonged suppression of the cryptocurrency’s price appears to have been driven primarily by these significant investors. However, as these whales scale back their selling, the path may be clearing for a Bitcoin price resurgence.
Recent data from Santiment highlights that the subdued Bitcoin prices in the past week can be attributed to substantial holders moving old coins that had been dormant for an extended period. The movement of these coins coincided with the anticipation surrounding Spot ETF approvals, causing a noticeable dip in the asset’s value. The age of these BTC holdings decreased as the whales transferred them from their wallets, indicating a sale of older coins.
The on-chain tracker reveals that, on average, the age of these holdings decreased from around 640 days to approximately 624 days following the Spot ETF approvals by the SEC. This shift is interpreted as a positive sign, suggesting a return to a bullish market.
However, after about a week of this activity, these large holders seem to have halted the movement of coins. Santiment notes, “There are mild signs that this continued movement of older coins is finally done for the time being.” While some interpret this as a potential signal that the bull cycle may be ending, there’s also speculation that these whales may have paused their movements, anticipating a price recovery. If this is the case, a reduction in selling pressure could provide Bitcoin with the opportunity to regain its momentum.
Presently, Bitcoin is contending with resistance at $43,000, a level that has proven challenging since the recent market crash. Bulls are struggling to overcome this hurdle, and the sell pressure appears concentrated at this point. Surpassing the $43,000 resistance could signify a resurgence in the rally, with $45,000 emerging as the subsequent major resistance. Conversely, a failure to establish $43,000 as support may lead to further price decline.