Bitcoin [BTC] has held above $63k since rebounding from a brief dip to $62k three days ago. At press time, Bitcoin was trading near $64,300. Amid extended market downside volatility, some long-term whales are capitulating and exiting at a loss.
According to Lookonchain, a whale deposited 625 BTC worth $39.96 million into FalconX. This whale returned after over a year of dormancy.
When the whale purchased these tokens, Bitcoin was trading around $96k, and he spent $59.98 million. Since then, BTC has decreased by approximately 33%, significantly impacting his investment.
As a result, the whale has lost over $20 million over this period. Notably, the whale’s decision to sell during a period of extended weakness and realizing such high losses reflected growing skepticism.
Bitcoin long-term holders remain steady
Interestingly, this whale’s behavior appears to diverge from the broader market sentiment among long-term holders (LTHs).
In contrast, BTC LTHs have significantly reduced spending. At the time of writing, the RHODL Ratio has dropped to levels last seen in October 2023.
Often, a low RHODL ratio suggests that selling pressure from long-term holders is significantly limited. Thus, experienced holders are not rushing to sell, a clear sign of the cohort’s market conviction.
That’s not all; long-term holders’ Sell Side Risk Ratio also remained extremely low at 0.000357, indicating that market pressure from LTH is very low, and those exiting are a minority.
Therefore, Bitcoin long-term holders are currently heavily exiting the market, primarily because of losses. With over $217 billion in unrealized losses, LTHs are not incentivized to sell.
What’s next for BTC?
Bitcoin remains range-bound, and the recent whale move has not affected price action. For now, the market remains weak.
At press time, the Directional Logistic Oscillator remained largely negative. In fact, it has been held within this zone for months, reflecting a prolonged bearish pressure.
The indicator suggests a high probability of downside continuation. Meanwhile, Bitcoin has held below the RSI Momentum Trend since it failed to hold above $66k.
Currently, the $66k remains as the dynamic resistance, and Bitcoin needs to close above this price level to boost the crypto’s recovery prospects. However, if sentiment remains low, BTC is likely to continue trading sideways.
Final Summary
- A dormant Bitcoin whale returned after one year and sold 625 BTC worth $39 million, taking a $20 million loss.
- Bitcoin’s selling pressure from long-term holders remains limited, as the cohort lacks incentives to sell.