Over the past week, large Bitcoin holders, often called whales, have offloaded approximately 50,000 BTC, equivalent to about $2.20 billion in value, per the post on X from crypto analyst Ali Martinez on December 22.
The move may raise concerns among investors that Bitcoin’s rally is over. However, the actual reasons are unlikely to be bearish in nature.
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Profit taking behind the sudden selloff
A potential rationale behind this abrupt divestment could be profit-taking, considering Bitcoin’s significant bullish trend in recent weeks.
The cryptocurrency’s price surge has garnered attention from institutional and retail investors, prompting certain long-term holders to capitalize on the chance to secure substantial profits. Nevertheless, the exact motivations behind these whale transactions remain speculative.
This claim is supported by BTC’s proportion of profitable supply, which currently stands at 89%, indicating an exemplary signal as we approach the end of the year. Typically, a more favorable range for potential further increases is observed when this metric falls within the 40-70% range, as per a post from Santiment on December 21.
Bitcoin price analysis
As of the latest update, BTC is priced at $43,517, reflecting a 0.62% decline in the past 24 hours. This contrasts with the positive gains of 3.07% on the 7-day chart and 18.79% on the 30-day chart.
Over the past year, the asset’s price has exhibited significant growth, registering a remarkable increase of 159%. Notably, it has outperformed 72% of the top 100 cryptocurrencies within one year.
Additionally, the asset is trading above its 200-day simple moving average, a positive indicator in technical analysis. In the last 30 days, the investment has experienced 18 days of positive price movement, constituting 60% of the observed period.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.