Bitcoin Surges 2.311% Amid Whale Activity and Short-Term Selling Pressure

Bitcoin's latest price was $96421.92, up 2.311% in the last 24 hours. This significant price increase has sparked a lot of interest and speculation in the crypto market. However, recent whale activity has sent shockwaves through the market, with a significant Bitcoin transfer of 1,811 BTC between two anonymous wallets. This transaction has raised questions about the motivations behind it, with some speculating that it could signify a tactical move for accumulation at lower prices or an early sign of liquidity exit as Bitcoin struggles to regain momentum from its recent decline. The anonymity of the wallets involved and the lack of exchange activity suggest that this transfer does not indicate a premeditated sell-off. However, it does contribute to a growing sense of unease among investors, especially given the broader market downturn.

This significant whale movement is not an isolated incident. The broader crypto market has experienced an overall decline, reflecting a bearish sentiment that has pervaded the market after mid-March. Despite witnessing considerable gains from late 2024, the market’s inability to break past prior highs casts a shadow over its potential recovery. The rising trading volume does indicate increased activity, yet it may not translate into new investments, revealing a cautious atmosphere among traders.

According to the latest on-chain analytics, there is a pronounced shift towards sell-side dominance. Bitcoin’s Spot Volume Delta has sharply declined, highlighting a strong sell-side presence as the 7-day Moving Average suggests the return of sellers. After a brief spike in buying activity in mid-April, the largest selling pressure was observed on April 30th, indicating that investors are cashing out at peak prices, likely contributing to Bitcoin’s recent drop. Should this trend continue, the market could be poised for increased volatility in the near term.

Bitcoin’s short-term holders are increasingly liquidating their assets, which is dampening demand momentum in the market. Recent data reveals that Bitcoin demand momentum has plummeted, indicating a more aggressive selling pattern among short-term holders compared to long-term holders. This spike in short-term selling pressure is dampening Bitcoin’s ongoing price rally, highlighting a shift in market dynamics. Over the past week, Bitcoin has witnessed substantial price increases, but most short-term holders now find themselves in profitable positions. Consequently, in the last 10 days, these holders have begun selling their Bitcoin for profit, as evidenced by the short-term holder spent output profit ratio (STH SOPR) remaining above 1 throughout this period.

Selling pressure from short-term holders has surged, reflected in the 30-day Demand Momentum’s sharp decline. The current negative reading indicates that short-term holders are offloading Bitcoin at a higher rate than long-term holders. Data shows that short-term holders dominate inflows into exchanges. Over the past day, those holding Bitcoin for less than a month have sent more than 26k BTC to exchanges, a trend persisting over the previous week. This surge in selling activities is significant. Over the past three days, Bitcoin’s Spot Volume Delta (7DA SMA) turned substantially negative, reaching a net value—a strongly bearish signal. This considerable drop indicates aggressive selling activities that are compromising spot demand, suggesting a potential reversal as buyers appear diminished. The increase in profit-taking has pushed the Profit-Taker RSI (7D) to 82, indicating heightened realized profits and increasing sell-side pressure against rising Bitcoin prices. Currently, the market is under the influence of sellers, particularly short-term holders, while long-term holders are maintaining their positions and not contributing to the selling.

Bitcoin currently faces a critical juncture. The divergence between aggressive selling from short-term holders and the steadfastness of long-term holders suggests potential consolidation. With long-term holders absorbing selling pressure, Bitcoin may remain within a range. To achieve a surge, a significant easing of short-term holder selling is essential; otherwise, any bullish momentum could stall. The recent surge in profit-taking has caused the Profit-Taker RSI (7D) to spike to 82. This increase indicates heightened realized profits and growing sell-side pressure as Bitcoin prices rise. Currently, sellers, particularly short-term holders, are dominating the market. In contrast, long-term holders are not selling and appear to be holding back.