Analysts claim that the Bitcoin (BTC) market may be entering a consolidation phase characterized by gradual selling by long-term investors.
“Long-term Bitcoin holders and whales appear to be behind much of the recent BTC selling, both on the exchange and via OTC transactions,” Bitfinex analysts said.
“Historically, long-term investors tend to gradually sell their assets during bull markets and especially when the market enters a consolidation phase like the one we are seeing now.”
Analysts pointed to the Bitfinex Hodler Net Position Change metric, a tool that tracks the assets of large Bitcoin holders, often referred to as 'whales'. This metric has consistently shown negative values for the last nine days, indicating that whales are reducing their Bitcoin holdings.
In addition to the net position change of major wallets, the BTC/exchange whale ratio continued to rise. This shows that more whales are depositing their BTC balances into exchanges. “These two assets dominate Bitcoin more than ETFs and are clearly putting pressure on the market,” Bitfinex analysts said.
*This is not investment advice.