Are whales slowing down the Bitcoin price rally: 73% of all BTC is profitable
- Bitcoin percentage tokens in profit crosses 73% according to Bitcoin Stock-to-Flow model creator Plan B.
- Bitcoin whales holding between 100 and 100,000 BTC are shedding their holdings and engaging in profit-taking.
- Short-term BTC holders are taking profits at the highest margin in over a year, according to on-chain data.
Bitcoin holders are engaging in profit-taking as the asset crosses a key level, $28,000. Plan B, the creator of the Bitcoin Stock-to-Flow valuation model identified that 73% of all BTC is profitable at the current price. On-chain data shows that short-term BTC holders are taking profits at the highest margin.
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Bitcoin sharks and whales take profits, slowing down BTC price rally
Bitcoin on-chain data from crypto intelligence tracker Santiment has shown an interesting find. There is a decline in holdings of large wallet investors with 100 to 100,000 Bitcoin. Whales are shedding their Bitcoin as seen in the chart below:
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Bitcoin holdings of investors
Despite the US financial regulator’s crackdown on cryptocurrency exchanges and assets, BTC price climbed past resistance at $28,000.
According to Plan B, the creator of the Bitcoin Stock-to-Flow valuation model, 73% of all BTC is currently profitable.
% BTC in profit
At 73%, several Bitcoin wallet addresses are profitable, thus driving profit booking by investors at the current price level.
As more investors engage in profit taking, it is likely that the Bitcoin price rally could get slowed down. There are three conditions to note in the context of BTC’s price rally, according to on-chain data from CryptoQuant.
- Short-term holders are taking profits since the margin is the highest it has been in a year
- Price valuation momentum is increasing and BTC could soon break into overvaluation territory
- Based on data from the Short Term Output Profit Ratio tool, investors are selling BTC holdings at a profit.
Bitcoin is in an uptrend, but for how long?
Whale wallet trackers indicate that over 320,000 BTC were moved or spent by large wallet investors since March 23. CryptoQuant analysts suggest that BTC is currently in a bull market, and a short-term decline in the asset is not indicative of a large-scale consolidation.
Nevertheless, when bulls engage in profit taking it is typically considered a bearish sign. The network activity and whale activity in BTC has soared and combined with the declining holdings of whales, this is indicative of a short-term correction in the asset’s price.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
