Although the leading cryptocurrency spent the first quarter of the year with an increase, it remained flat in April and May, except for momentary events. The new on-chain data released confirms the situation, while the vast majority of experts speak of a selling pressure.
AxelAdlerJr, one of the CryptoQuant analysts, explained on a chart why Bitcoin could not exceed the $28,000 level.
According to the on-chain analyst, medium-term investors who bought Bitcoin in January-February made the profit they expected and went on sale in May. The Sum Coin Age Distribution metric has been showing a sharp downward movement since May 2, 2023.
Whales Are More Cautious
Another on-chain data tracker, Glassnode, focused on how Bitcoin whales move.
When assessing the #Bitcoin Accumulation Trend Score by Cohort, we note that the largest of Whales (>10K BTC) have transitioned from a regime of heavy accumulation to one of equally balanced inflows and outflows.
With all other major cohorts aggressively distributing coins, the… pic.twitter.com/mzoORrDyhs
— glassnode (@glassnode) May 17, 2023
According to the post from the official Glassnode account, large whales with more than 10 thousand Bitcoins are following a more balanced trade instead of accumulating. However, unlike giant players, small investors who take short-term declines as an opportunity continue to accumulate.
According to the data, the number of addresses holding more than 0.1 Bitcoin cryptocurrencies has exceeded 4.3 million as of today.
Why Doesn't Bitcoin Rise?
Although the FED is likely to keep interest rates stable in June, it is confusing that some Fed members gave increase signals. Especially considering the uncertainty of FED policy and a possible recession risk in the USA, BTC cannot perform as expected.
While all this is going on, the SEC's harsh stance on the crypto money industry is one of the biggest factors that make investors nervous.
When we look at the price side, it is stated that $ 27,200 is especially important for BTC at this stage, while permanence on it may trigger the rise to $ 30,000 again. However, losing this level may bring up a possible $25,000 level.