Following a turbulent period marked by a significant market downturn, Bitcoin is showing signs of recovery, with prices remaining above the $102,000 level. While there are indications of a potential rebound, larger Bitcoin holders seem to maintain a pessimistic outlook.
Significant Liquidations by Medium-Sized Holders
As Bitcoin trends upward, holders with between 10 to 100 BTC are selling off their assets on a large scale. Technical analyst Axel Adler Jr. noted this concerning trend, leading to doubts about whether Bitcoin’s current price level can be sustained.
Data from blockchain analytics reveals a consistent decline in the number of wallets that contain 10-100 BTC over the last two years. This ongoing selling might be interpreted as the investors taking profits or realigning their strategies as BTC gains momentum.
In June 2023, the total amount held by this group peaked at 3.2 million BTC, but it has since decreased by over 600,000 BTC, now standing at 2.6 million BTC. The average amount held by these larger investors is approximately 3.15 million BTC.
Adler observed that investors have been withdrawing amounts between $1 million and $10 million during the recent downturn, resulting in the creation of many new millionaires over the past six months.
The actions of large investors typically sway Bitcoin’s price trends and stability. Despite a slight recovery, continued sell-offs by these stakeholders could jeopardize upward momentum and provoke a retreat toward significant support levels.
Recently, during a broader market decline, the quantity of BTC trading at a loss surged. Adler noted that as Bitcoin’s price dipped to around $98,000, the overall supply of BTC in loss jumped to about 2 million. This increase reflects investor trepidation regarding the new release of DeepSeek’s technology and inflated valuations in the AI sector. With 2 million BTC now in the red, this trend could indicate increased risk for further liquidations.
However, the supply of BTC in loss has subsequently eased to 738,000 as prices gradually rise, aligning with the average for the quarter. This reduction suggests that the market is stabilizing and returning to usual levels.
Bearish Pressures on BTC Pricing
Looking at BTC’s recent trading patterns, it appears the asset may be entering a consolidation phase, moving between the $103,000 and $100,000 range. This behavior is driven by mounting bearish pressures and a reduction in investor confidence, hinting at a potentially extended period of consolidation.
With increasing bearish sentiment, Bitcoin’s trade is slightly over $102,500, reflecting almost a 3% drop from the previous day. This decline has prompted more selling activity, evidenced by a 44% reduction in trading volume in just 24 hours.