Whales have been selling in preparation for a pullback, Bitcoin price loses 4%
The circulating Bitcoin supply is distributed differently now, and crypto whales are holding less than they used to. In which, the share of large crypto holders has declined and now 25%. Previously, it was about twice as big. At press time, Bitcoin price is changing hands at $44,613, down over 4% in 24 hours.
BTC/USD 4-hour chart | Source: TradingView
Whales’ holdings have dropped to 25% of the total BTC supply, Bitcoin price testing $44,200
The chart shows the way the circulating Bitcoin supply is being distributed at the moment. This indicates that whales’ holdings have dropped to 25% of the total BTC supply.
“Bitcoin distribution keeps getting better. Whales now hold only 25% of the supply. I’ve updated this chart to include holdings by public companies. Though they are whales, their coins are owned by a large number of public shareholders. Satoshi’s coins were omitted (assumed lost)”, Woo stated.
BTC supplies held by other market participants are also visible on the chart: 10 – 1,000 BTC wallets hold approximately 37% of the Bitcoin supply. This number is also in decline. Investors who hold less than 10 BTC are also increasing their holdings. Woo refers to them as minnows, and their BTC stashes have grown to 14%. The increases and declines on this chart have been taking place over the past few years mainly.
Also, according to an analysis from CryptoQuant, many stablecoins are lying in centralized crypto exchanges at the moment, and they are close to reaching all-time highs.
“While BTC price is trending upwards, the stablecoin supply on exchanges remains close to all-time highs. If these stablecoins are not employed into loan products etc., there is potentially still a lot of capital on the sidelines ready to be deployed into Bitcoin”, CryptoQuant-verified analyst Jan Wuestenfeld stated.
Stablecoin Supply on Exchanges Continues to be Close to All-Time Highs | Source: CryptoQuant
So, unless these funds are being prepared for investment into crypto loan products, they can be potentially deployed in the flagship cryptocurrency. According to the chart, the rise of the stablecoin supply on exchanges has taken place just recently – between July and August.
BTC retesting $44,200, down more than 4% in 24 hours, is probably a sign that the market is insufficient to sustain previous gains. As AZCoin News reported, BTC spent the last day looking for a new local high near $47,000, but significant resistance at that level eventually won out, and volume failed to sustain the bulls’ cause.
On significant exchange Binance, buyer support was thin much above $42,000, with the considerable sell wall still in place at $47,000.
BTC/USD buy and sell levels (Binance) as of August 12 | Source: Material Indicators/Twitter
The sudden spike in profit-taking comes when Bitcoin has struggled to slice through a significant resistance barrier.
Holders within the $45,230-$46,560 who have been underwater may be trying to break even on their positions, slowing down the uptrend. If this selling pressure continues, Bitcoin could turn around.
Investors who remain optimistic despite the sell signals should watch the $45,230-$46,560 resistance level. A decisive move above this supply zone could see Bitcoin rise towards the next area of interest between $49,300 and $50,700.
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