Bitcoin Whales Dumping Millions Worth of BTC
Recent reports indicate that Bitcoin (BTC), the largest cryptocurrency in the world, is facing a potential price crash as whales and institutions have been selling off significant amounts of BTC in the past 24 hours. On September 5, 2024, a prominent Bitcoin whale made a significant move by selling off 680 BTC, valued at $38.77 million, on the Binance exchange.
This particular whale had previously purchased 4,562 BTC at an average price of $26,449 in late 2022. However, they decided to sell 3,938 BTC when the price of BTC was near $46,000. As a result, this smart whale has managed to make a profit of approximately $96 million from these transactions.
The recent sell-off occurred as BTC was trading around $57,000 and formed a bearish candle on the four-hour time frame. Since then, the price of BTC has been steadily declining, heading towards the $54,000 level. Additionally, dormant BTC holders have also started to become active, which could be seen as a bearish sign for the cryptocurrency.
Potential Fall in Bitcoin Price to $54,000 Level
Expert technical analysis suggests that BTC is currently showing strong bearish signals. The cryptocurrency has been forming a pattern where each new high is lower than the previous one, and each low is also lower, indicating a downward trend. If BTC closes a four-hour candle below the $56,000 level, it is likely to drop further to the $54,000 level in the near future.
On-Chain Metrics Indicate Massive Sell-off
In addition to the price action, on-chain metrics data for BTC is also pointing towards a significant sell-off. The BTC Long/Short Ratio chart from CoinGlass is currently below one, standing at around 0.953, showing a bearish sentiment among traders. Currently, 51.2% of top BTC traders are holding bearish short positions, while only 48% are holding long positions.
Furthermore, BTC futures open interest has been declining steadily, indicating lower interest from top traders amidst the prevailing bearish sentiment. Since August 24, 2024, BTC’s open interest has dropped from $34.72 billion to $29.33 billion.
Bitcoin Price Momentum
At the time of writing, BTC is trading near the $55,900 level, experiencing a 3.7% price drop in the last 24 hours. However, trading volume has increased by 12% during the same period, suggesting higher participation from traders amid the sharp price decline.
