Bitcoin Whales Drastically Reduce Supply While Oversold Levels Indicate Potential Bearish Trend
Initially, Bitcoin whales were accumulating over 300% of the newly mined Bitcoin, showing strong demand and long-term bullish sentiment akin to the pre-2020 bull run. Bitcoin’s price broke out of a falling wedge pattern, with potential rally predictions. However, recent developments indicate Bitcoin has entered oversold levels, highlighting a shift in market sentiment. This change is reinforced by whales offloading their holdings, creating selling pressure that contradicts the initial accumulation. While oversold conditions might suggest buying opportunities in the short term, experts warn they do not indicate a bullish reversal on higher time frames. CryptoQuant’s CEO, Ki Young Ju, highlights Bitcoin’s oversupply, reflecting ongoing market strain. Traders are advised to exercise caution as the market currently shows a bearish outlook.
Bearish
Although initial whale accumulation suggested a bullish sentiment, the recent realization of oversold conditions paired with large holders selling their Bitcoin changes the market outlook to bearish. This is due to the oversupply, significant selling pressure, and lack of indications for a bullish reversal on longer timeframes. Such dynamics suggest traders expect further declines rather than immediate recoveries, impacting market sentiment negatively.