As Bitcoin [BTC] shows relative strength, some long-term holders are starting to make moves. In fact, one whale has captured market attention after shifting away from accumulation.
Onchain Lens reported that a whale who has been aggressively accumulating Bitcoin over the past six years finally moved his assets. According to the on-chain monitor, $130.5 million worth of Bitcoin was transferred.
The associated wallet moved 800 BTC worth $52.2 million to Cumberland for OTC. At the same time, the wallet moved 1200 BTC worth $78.3 million to new addresses.
The whale’s decision to move some holdings to Cumberland signaled the intention to sell. While OTC hardly directly affects the market supply, it could significantly affect market sentiment. However, the transfer of the large amount to a new address suggested the whale is not fully exiting but repositioning.
Any impact on BTC?
Usually, a major transfer from long-term holders is closely watched by market players. Despite the attention, it seems the transfer had no negative impact on Bitcoin’s price action.
On the contrary, BTC has continued with its bullish streak, rising to a monthly high of $66,314 before a slight pullback. At press time, Bitcoin was trading around $66,195, after rising by 3.02% on the daily charts.
With BTC holding within an uptrend since $62k a day ago, the momentum has strengthened extensively. The Stochastic Momentum Index (SMI) hiked to 67 after forming a bullish crossover two days ago.
At these levels, the current trend is relatively strong. Furthermore, the Squeeze Momentum Indicator has held and remained positive over the past week, reflecting strengthening momentum.
Often, when these indicators move in such a manner, the prevailing trend is likely to continue. If the momentum holds, Bitcoin will flip $67k and target a move above $70k.
Does Bitcoin still face rising pressure?
Although the whale transfers have had little to no impact on Bitcoin, the upward trajectory has incentivized profit takers to return.
For starters, the Bitcoin Fund Flow Ratio has been on the rise over the past week, climbing to a high of $0.06 at press time.
A rising Fund Flow Ratio suggests more coins have recently flowed into exchanges. Higher exchange flows increase the risk of short-term bearishness. This trend was further confirmed as Exchange Netflow turned positive, rising to 4.7K.
A positive Netflow suggests more BTC has recently flowed into exchanges. Historically, increased exchange inflows have preceded a weakened market structure.
Therefore, if sellers continue to offload, the pressure could weaken momentum and likely push it to $64,800.
Final Summary
- A Bitcoin whale moved 2,000 BTC worth $130.5 million, moving 800 BTC to Cumberland OTC and 1,200 to fresh addresses.
- Rising Fund Flow Ratio and positive Netflow signal growing exchange inflows, raising short‐term bearish risk for Bitcoin.
