- Technical indicators suggest a potential price reversal for Bitcoin.
- Large traders (whales) are accumulating while smaller holders (sharks) are selling, adding complexity to price action.
- Strong debut and potential for further inflows suggest a positive outlook for Bitcoin despite short-term volatility.
Bitcoin (BTC) price is gradually forming a reversal pattern that will increase its volatility in the coming weeks. After closing last week on a shooting star pattern and a possible double top coupled with a bearish divergence on the weekly Relative Strength Index (RSI), it is more convincing that a post-ETF reversal is inevitable.
Furthermore, short-term Bitcoin holders and miners have accelerated their profit-taking in the recent past in anticipation of the altcoin season. Notably, Ethereum (ETH) dominance has continued to gain momentum against Bitcoin, following the resounding rebound of the ETB/BTC pair.
On-Chain Insights: Whales Makes Waves
Bitcoin’s blockchain activity is buzzing, with three significant transactions totaling approximately 42,870 coins in the past 24 hours. A noteworthy single transaction involving a whopping 11,000 coins, deposited into a Coinbase wallet by a crypto whale, has injected selling pressure amid the prevailing bearish sentiments.
Also Read: Wall Street Not Saving Bitcoin Longs: BTC Price Could Reach Here by the End of January 2024
Santiment’s data analysis reveals a strategic interplay between crypto whales and sharks. Whales, holding over 10,000 Bitcoins, strategically accumulate more, while crypto sharks with holdings below 1,000 Bitcoins have been actively offloading in recent days, adding complexity to market dynamics.
Spot ETFs Continue to Soar
The debut of spot Bitcoin ETFs in the United States witnessed a successful three-day trading session. With nearly $10 billion in cumulative trading volume, these ETFs outshone the $450 million recorded by 500 newly approved ETFs in 2023.
With more cash inflow expected in the spot Bitcoin ETFs around the world, the macro bullish outlook will undeniably prevail in the coming years.
Read More: Bitcoin ETF Buzz Triggers Golden Opportunity for Short Sellers; Here’s How
