Bitcoin (BTC) is currently undergoing a sell-off, marking the first time since December 2023 that the flagship cryptocurrency has dropped below the $40,000 support zone.
This selling pressure aligns with a phase where Bitcoin whales are actively dumping a significant portion of their holdings. Notably, data from cryptocurrency analyst Ali Martinez revealed that as of January 23, Bitcoin whales had unloaded nearly 70,000 BTC, almost $3 billion, within the past two weeks.
Bitcoin whales selling activity. Source: Ali Martinez
It’s worth noting that the recent activity of the whales has unfolded against the backdrop of the approval of the spot Bitcoin exchange-traded fund (ETF), deemed a bullish catalyst for the cryptocurrency. The product has recorded significant outflows with Grayscale Bitcoin Trust (GBTC) accounting for the highest share.
Bitcoin price analysis chart. Source: TradingView
It’s worth noting that Bitcoin’s uptrend began in September 2023 and lost momentum at the start of 2024, with the price predominantly showcasing lower highs and lower lows.
As Bitcoin searches for an upside movement, it faces resistance at the psychological level of $40,000, with bulls and bears contending to maintain control within their respective sides of the zone.
By press time, Bitcoin was trading at $39,075, experiencing daily losses of nearly 4%. On the weekly chart, BTC is down almost 10%.
Bitcoin-seven day price chart. Source: Finbold
Finally, on-chain data from the crypto analysis platform Santiment noted that the prevailing bearish sentiment has influenced overall market discussions, resulting in a 35% drop in conversations about the flagship cryptocurrency as of January 22. Therefore, only time will reveal how Bitcoin will react to these market dynamics.
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