Key Takeaways:
- Bitcoin retests $30K resistance again.
- Whales sell while small retail investors accumulate.
- Several technicals and macroeconomic factors point to a looming decline.
YEREVAN (CoinChapter.com) – Bitcoin price has dropped over 3% since peaking at $31,000 on April 14 and changed hands at $29,900 ahead of the European session on April 17. While the flagship crypto advanced 83% in value year-to-date, expectations differ among large BTC holders (whales) and small retail investors (shrimp).
Bitcoin Shrimp Addresses Accumulate — Whales Sell
According to the crypto analytical platform Glassnode, addresses holding over 0.1 BTC, or around $3,000, hit another record high at 4.3 million.
Bitcoin whales set the tone for smaller addresses.
The data above shows that retail investors expect more price appreciation in the current quarter and stack up before another leg up.
However, the whales disagree. The number of accounts holding over 100 BTC, or around $3 million worth of Bitcoin, has dropped, reaching a 4-month low, which could mean the shrimp bias is also about to change.
In short, due to the high unpredictability of the crypto market, Bitcoin whales often set the tone for smaller players. The retail investors watch them for clues, assuming they have more information and resources to make the right bet. Thus, while shrimp and whale behavior disperse at the moment, the divergence is not likely to last.
Also read: Bitcoin Hits $29K But Can It Survive A Crisis: A Look Through BTC History Amid Economic Fallouts.
Meanwhile, the inflow of BTC to exchanges in the previous week underscores the intention to swap Bitcoin for other crypto and fiat rather than HODL.
Will the Bitcoin Downturn Continue?
Several factors put shrimp’s bullish expectations under further scrutiny.
Also read: Bitcoin Price Above $30K As US Inflation Data Looms.
For example, the declining trading volumes speak of a looming decline in the short term, as seen in the chart above. Additionally, the continuous lower highs from the relative strength index (RSI) diverge from the price action’s higher highs. Such deviation typically underscores the bearish expectations.
Furthermore, another analytical platform CryptoQuant, expects BTC buying pressure to increase in the coming months due to a possible dump of the US government’s Bitcoin holdings.
“The US government’s bitcoin was sold in the first batch on March 14th. The remaining bitcoin, about 41,491, will be sold in four other batches throughout the year. Dividing the number of days in a year by the number of batches gives 73 days, which is exactly the day the first batch was sold.”
commented CryptoQuant
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