Crypto News- After Bitcoin surged past the $37,000 milestone last week, the bulls seem determined to maintain these levels. However, as of the latest update, Bitcoin is currently trading at around $36,950, facing downward pressure from sellers.
Recent on-chain data reveals a strategic exodus by Bitcoin whales over the past week. According to insights from Santiment, a trusted source in the crypto space, prominent crypto analyst Ali Martinez notes a significant profit-taking spree among Bitcoin whales. Approximately 60,000 BTC, valued at around $2.22 billion, has been either sold or redistributed by these whales. This trend raises eyebrows in the market.
Bitcoin Whales Offloading Assets in Bulk – Potential Warning for the Market?
Further analysis indicates that the total open interest (OI) has dropped below levels seen when Bitcoin was valued at $25,000. This decrease in OI, even with the price surge, suggests a potential lack of new capital inflows into the futures market. This phenomenon reflects a cautious or bearish sentiment among traders.
Amidst this scenario, speculations persist regarding a potential Bitcoin retracement to $20,000, $25,000, or even dipping below $30,000. Analysts attribute these predictions to concerns surrounding regulatory changes, macroeconomic factors, and the inherent unpredictability of the cryptocurrency market.
The direction of the BTC price hinges on whether the bulls can overcome the resistance at $37,033.37. A successful breakthrough could propel Bitcoin toward challenging the upper resistance at $38,082.91 in the short term. Sustaining this level might set the stage for a market push toward the year-end target of $40,000.
Conversely, if the bears take control and momentum falters, a price retreat to test support at $36,000 may occur. A sustained bearish trend could lead to a significant drop, testing the crucial support at $33,429.29. Noted crypto analyst Rekt Capital provides valuable insights on potential scenarios and advises investors on necessary steps moving forward.