Bitcoin (BTC) price struggles to rally above $17.5k as miners and whales continue to liquidate their BTC positions. The BTC price has failed to show any significant upside move and remains under pressure following the collapse of FTX.
Whale Alert in a tweet on December 10 revealed that a whale has transferred 9,901 BTC worth $170 million to crypto exchange Kraken.
On-chain data reveals the Bitcoin whale purchased 9,901 BTC for $391.91 million on July 29, 2021. The BTCs remain unmoved since the date and the wallet has no other transactions. The whale has sold the Bitcoin holdings for a loss of $222 million.
Analyst Ali Martinez has also shared that around 33 whales holding 1,000 to 100,000have left the network. In fact, these whales sold or redistributed around 20,000 in the last 96 hours. Now, there are only 2037 wallets holding 1,000 to 100,000
However, Santiment on-chain data platform tweeted that the supply of Bitcoin and Ethereum on crypto exchanges are now at a 4-year low. Thus, it indicates a lower sell-off risk.
As reported in a previous article, whales are still selling their BTC holdings. Whales continued to reduce their Bitcoin holdings since June 2022 and sold nearly 367k BTC. Moreover, whales with 1k-10k BTC continued to liquidate their Bitcoin holdings during the miner capitulation phase until November. Therefore, traders must observe whales increasing their BTC holdings to confirm a Bitcoin rally.
Analysts such as Michael van de Poppe and “Wolf of the Wall Street” Jordan Belfort believe Bitcoin can rally if it crosses $18k, suggesting $16.5k as a critical support level. However, the BTC price has failed to pass even $17.3k and on-chain data predicts $18k is a strong resistance level.
Moreover, miner capitulation and whales selling their BTC holdings indicate uncertainty. On-chain predicts that BTC price can bottom at $12.8k, the delta price for Bitcoin.