Bitcoin Whales Stay Quiet as BTC Struggles Below $100K
Bitcoin whales, or large holders of Bitcoin, are taking a “wait-and-see” approach as the cryptocurrency hovers just below the $100,000 mark, according to a recent analysis. The lack of immediate selling pressure, combined with rising Bitcoin inflows into exchanges, highlights potential risks of future market volatility, a crypto analyst warns.
Bitcoin Whales Remain Passive Amidst Market Fluctuations
Onat Tütüncüler, a contributor to CryptoQuant, noted in his Nov. 2 analyst note that although there is no immediate selling pressure, there is a rising trend of Bitcoin inflows to exchanges. Tütüncüler stated, The rising inflow of Bitcoin into exchanges highlights a potential risk of future sell-offs. These movements should be closely monitored to anticipate any possible market impact.
Bitcoin whales typically make large transfers to exchanges when they intend to sell their holdings. However, the current lack of a sell-off suggests that these large investors may be taking a more cautious approach and are not yet ready to liquidate their positions. This indicates a “wait-and-see” stance, where whales are holding off on major market moves.
Market Signals: No Major Profit-Taking Yet
Tütüncüler further explained that the Adjusted Spent Output Profit Ratio (aSOPR), a key metric that tracks profit-taking activity in the market, does not yet show significant selling activity. Historically, this ratio reflects changes in market trends as traders absorb profits through trading volumes. According to Tütüncüler, “The aSOPR does not yet indicate significant profit-taking activity,” suggesting that investors are holding on to their Bitcoin in anticipation of further price growth.
Bitcoin’s Dominance Shows Signs of Shifting
Bitcoin’s dominance in the market also reflects this cautious sentiment. The cryptocurrency’s dominance has dropped by 5.54% since Nov. 28, which could indicate that Bitcoin is starting to see some rotation into other assets. The shift in dominance aligns with the broader market sentiment, with many traders waiting for clearer signals before making major investment decisions.
At the time of writing, Bitcoin was priced at $95,809, according to CoinMarketCap, reflecting its struggles to break past the $100,000 barrier. However, the long-term holder realized price, which reflects the average price long-term investors paid for their Bitcoin, stands at $24,994, showing that many investors are sitting on significant profits.
Traders Remain Skeptical About Bitcoin Reaching $100,000 by 2024
Despite Bitcoin’s upward trajectory, traders remain skeptical about the cryptocurrency reaching the $100,000 mark by the end of 2024. Pseudonymous crypto trader Rekt Capital commented on Dec. 3 in a post on X (formerly Twitter), stating, “Bitcoin continues to retest the series of Lower Highs as support.” They noted that Bitcoin is showing signs of weakness, producing “longer and longer downside wicks,” which suggests that short-term market fluctuations are likely.
While Bitcoin briefly surpassed $99,800 on Nov. 22, coming within $200 of its all-time high of $100,000, traders are unsure if the cryptocurrency will break through that psychological barrier in the immediate future.
Market Uncertainty: Will Bitcoin Reach $100,000 by Year-End?
Szymon Sypniewicz, co-founder and CEO of Ramp Network, also expressed doubt about Bitcoin’s ability to hit $100,000 before the end of 2024. In a recent interview with Cointelegraph, Sypniewicz said, “While reaching $100,000 for Bitcoin seems inevitable at some point, it’s uncertain whether it will happen before the end of the year, as we can expect the market to experience some ups and downs along the way.”
Given the market’s volatility, Bitcoin may still face challenges as it tests resistance levels and reacts to broader economic conditions. However, many analysts believe that a long-term upward trend is still in play, even if short-term price fluctuations continue.
Patience Is Key for Bitcoin Investors
As Bitcoin continues to fluctuate just below the $100,000 mark, whales and traders alike are taking a cautious approach. The market remains volatile, and while there is optimism about Bitcoin’s long-term potential, uncertainty about its immediate future keeps traders on the sidelines. As the year progresses, the cryptocurrency market may experience both upward and downward swings, with investors remaining vigilant for signs of major price movements.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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