Crypto markets are experiencing a significant change in their dynamics as the prices of the top two tokens, Bitcoin and Ethereum, are fluctuating in diverse directions. The Ethereum price marked a high of $3031 after a prolonged consolidation of over 2 years, which was expected to lift the momentum of the whole market. Unfortunately, with the advent of the bears, the Bitcoin price is experiencing significant upward pressure while ETH remains consistent.
Why is Bitcoin facing a rise in selling volume? Will this weaken the ETH bulls?
One of the major reasons why the BTC price maintains a descending consolidation could be the enhanced activity of whales. If the whales accumulate, then the price tends to surge as the traders become hopeful of the upcoming trend. However, according to data from Santiment shared by a popular analyst, Ali, the whales may have become bearish on Bitcoin.
The above chart shows the addresses holding tokens ranging from 1000 to 10,000 BTC have sold over 30,000 BTC in the last 48 hours. The liquidation of more than $1.5 billion worth of BTC may signal the beginning of a distribution phase, which is a noteworthy movement within the market. The whales have been accumulating since the beginning of the year and have accumulated over 300,000 BTC, which assisted in the price rise from levels below $39,000 to the current highs.
Will the whale liquidation create a fresh bearish case for Bitcoin?
The Bitcoin price has soared over 35% since the start of the year and over 112% in the past 6 months, after a breakout from the consolidation. Despite this, the traders do not appear to have encountered a ‘FOMO’ condition as the interest in BTC did not convert into extreme greed. The data from Santiment indicates that the social volume over the asset has been considerably high but the lack of greed suggests the prevailing trend may continue.
The above chart displays the trader’s interest in BTC, which has been at decent levels since the beginning. The levels spiked when the spot Bitcoin ETF was approved but this failed to trap the market participants under FOMO. As a result, the Bitcoin price may continue to rise until social dominance spikes, indicating that the token has reached a local peak.
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