Bitcoin Market Update

Bitcoin declined by 12.90% over the past month.
The aggregated amount of Bitcoin held by whales hit a 6-year low.

As Bitcoin (BTC) struggles on its price charts, it seems whales have also started to sell. According to recent data from IntoTheBlock, Bitcoin’s supply held by whales has been on a decline.

As such, the aggregate amount of BTC held by large holders has declined to its lowest levels since 2019. This decline has marked a six-year low.

When supply held by whales hits such lows, it suggests a significant shift in market dynamics, implying that whales are actively selling.

With whale selling, it could indicate that institutions are selling for operational costs as prices decline, or large holders are completely closing their positions, waiting for other buying opportunities.

Notably, this change in supply dynamics could imply several things. First, it suggests that whales are redistributing BTC to retail investors, which might result in more decentralization, reducing whale-influenced market trends.

As such, if whales are selling while market demand remains relatively high, it indicates that supply is reaching a broader base of investors.

Looking at Bitcoin’s exchange netflow, the data suggests that market demand remains high. Currently, the market is experiencing more outflows than inflows, which implies that while whales have sold, the broader market retains strong demand for the asset, critical for price stability.

BTC’s Next Levels

With whales selling, the next question is: what’s next for BTC price movement? Although whale supply has declined, Bitcoin is not facing significant selling pressure. This is evidenced by the declining fund flow ratio to exchanges over the past week.

A declining fund flow ratio suggests that there are fewer deposits to exchanges, indicating that current holders are not planning to sell. This signals longer-term holding behavior as investors continue to accumulate their BTC.

Therefore, the decline in whale supply—while other investors continue holding—suggests that markets will likely consolidate as buyers absorb selling pressure without driving prices higher.

Consolidation appears probable, as buyers may not be strong enough to absorb the selling pressure and push prices to higher resistance. If consolidation occurs, BTC must remain above $84,640, as per Alphractal.

If the price consolidates above this level, it is likely to establish a local bottom before aiming for new all-time highs in the near future.

However, if Bitcoin stays below $84K for several days, the next target on the CVDD Channel is $64,700, which coincides with the April 2021 all-time high.