Bitcoin Sell-Off, Whales & Today's 7% Price Drop Explained - Exclusive.
2021-05-11 | Mike Hallen
Bitcoin’ short-term price prospects are looking
a touch bleak, with blockchain data pointing to renewed selling by “whales” - major investors with
the power to influence markets.
The number of whale entities – clusters of wallet addresses held by
one network participant holding
a minimum of 1k Bitcoin [
BTC, -1.12%] - fell to a 5.5-month low of 1,943 on Monday,
consistent with data offered by Glassnode.
The metric has dropped by 60, or 3%,
within the past 5 days, extending the decline from a record high
of 2,237 earlier on 7
th Feb. Whale selling had eased off
within the last half of April.
"The data looks bearish,
as it reveals
a transparent trend of whales offloading their holdings," outlined Pankaj Balani, co-founder & CEO of the Singapore-based Delta cryptocurrency exchange.
From October 2020 to February 2021,
the number of whale entities had risen in lockstep with bitcoin's price, validating the narrative that the rally over that period was
the merchandise of hiked participation by major investors.
Hence, the divergence between
the 2 metrics
might be a cause for concern for the
bull signals.
Bitcoin's price has been generally restricted to the $50k to $60k range since mid-March amid continued selling by whales. Additionally, retail investors alone
are struggling to drive the rally.
Recent market-wide price action suggests investor focus has shifted from Bitcoin to Ethereum [ETH, -5.26%] along with other alternative altcoins.
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