On November 14, cryptocurrency analyst Alí Martinez shared on-chain data revealing that on November 3, Bitcoin whales began taking profits as the BTC price rose from $35,000 to nearly $38,000.

Martinez reported that during the recent surge in Bitcoin prices, driven by BlackRock, the world’s largest asset manager with $9.42 trillion in assets under management, which applied for a Bitcoin spot ETF approval from the SEC in June, over 15 wallets holding more than 1,000 BTC sold or redistributed their assets.

Selling or redistributing cryptocurrencies during price uptrends is common behaviour among large holders in the crypto market, allowing them to lock in profits during periods of volatility and uncertainty.

Bitcoin Whales Sell 60,000 BTC in a Week

On November 13, Martinez reported that Bitcoin whales had started taking profits, totalling over $2 billion in sales of the market’s primary digital asset.

“Bitcoin whales have been taking profits, selling, or redistributing around 60,000 BTC over the past week, equivalent to approximately $2.22 billion,” added Ali.

Major Whales’ recent massive Bitcoin sell-off highlights their strategic approach to securing quick profits. Furthermore, this move occurs when the BTC price faces significant psychological barriers, around $38,000 and $40,000. Bitcoin has not revisited these price levels since April 2022, when the crypto winter ensued due to the collapse of Terra LUNA and its stablecoin UST, an event with devastating consequences, leading to the closure of numerous crypto companies and funds.

Where Is the Bitcoin Price Heading?

As recently reported by ZyCrypto, several analysts foresee a potential increase in Bitcoin towards the $43,000 zone due to the recent bullish surge after months of stagnation. For instance, veteran trader and analyst Peter Brandt believes that a bullish pennant is forming in BTC, which could propel the pioneering cryptocurrency to that level.

A “pennant” is a chart pattern that forms during upward trends in the price of an asset. It consists of a mast or “flagpole” showing the strong prior increase, followed by a period of sideways consolidation identified by converging lines, similar to the edges of a flag.

The formation of this pattern suggests that the market is taking a temporary break after a sharp rise. This means that buyers are becoming more cautious, and the bullish momentum is slowing down. However, it does not imply a change in the positive trend of the asset, in this case, Bitcoin. Usually, when this pattern occurs, it anticipates the end of the consolidation of an asset and the continuation of the bullish movement.

Brandt and CryptoJelleNL agree that if this bullish formation materializes, the BTC price could surpass $43,000. However, both the bulls and Bitcoin whales seem to remain cautious amid warnings from other analysts about a possible bearish divergence.

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Filed under: Bitcoin - @ November 15, 2023 8:05 pm