Crypto News

Bitcoin Faces Selling Pressure As Big Whales Move Older Coins

Since the introduction of the Bitcoin ETF last week, Bitcoin’s price has shown modest performance, hovering around the $42,000 mark. Despite a spike to $48,000 during the ETF certification process, significant selling pressure has emerged in the aftermath.

Reports from Santiment reveal that prominent Bitcoin wallets are swiftly liquidating older coins, leading to a notable drop in the average age of coins within these wallets.

The average age has decreased from 640 to 624 days, signaling a potential interruption in the ongoing bullish cycle. This shift in coin movement could temporarily pause the current upward trend.

Bitcoin Sets Eye To $50,000 Level

However, there is speculation that a few substantial whales might initiate significant coin transfers, further reducing the mean dollar invested age of Bitcoin. This could potentially trigger another wave of testing resistance levels, including $45,000 and possibly $50,000.

In addition, there is a growing concern about the impact of U.S. stock ETF trading on cryptocurrency prices. Large put options, amounting to $120 million and representing 16% of the total volume, have seen notable trades – a significant increase compared to average trading days.

The market witnessed a dominance of selling short-term put options in individual block trades exceeding $5 million, while the purchase of short-term puts prevailed in smaller orders.

As the cryptocurrency market navigates the dynamics influenced by both internal factors like coin movement and external factors like stock ETF trading, Bitcoin faces a complex landscape with potential shifts in momentum and volatility in the near term.

Traders are closely monitoring these developments to gauge the future trajectory of the leading cryptocurrency.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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