In a new update, Mt. Gox transferred more than 13,000 BTC to a fresh wallet, which is expected to be further transferred to other exchanges. Previously, the rounds of transfers had a huge impact on the rally, which was coupled with the German government selling their seized BTC. However, the Bitcoin price remains largely still at the moment, suggesting a negligible impact on the token and the entire crypto space.
Are the market participants confident about the upcoming price rally? If yes, what’s preventing the Bitcoin price from rising and sustaining above $60,000?
The market participants do appear optimistic about the upcoming price action, as the rounds of fresh transfers from the Mt. Gox wallet failed to intensify the bearish activity. One of the major reasons could be the huge involvement of the whales, who have been accumulating more tokens. As per the data from Santiment, the wallets holding between 100 and 1000 BTC have accumulated nearly 94.7K tokens in the past 6 weeks.
The BTC price has shaken heavily in the past few weeks, and many retail traders have liquidated their assets, contributing to the selling pressure. In the meantime, key stakeholder groups, or whales, continued to stake up large amounts of BTC. Regardless of the bullish sentiments, the BTC price continues to remain consolidated within a narrow range.
Who is selling Bitcoin?
The BTC price in the long term remains bullish as the bulls are attempting to elevate the levels and sustain them above $62,500. In the meantime, the new investors appear to have shaken up to a large extent, as they could have fallen prey to ‘panic selling’. As per the data from Glassnode, the short-term holders or the new investors ‘over-reacted’ when the BTC price slipped below $50,000.
Now that the BTC price is hovering around $59,000, the short-term holders who bought in early 2024 are at a loss. The STH’s MVRV ratio has dropped below 1.0, which is a signal of an extended loss, which may further trigger more panic among investors and intensify the selling pressure. As a result, they overreacted when BTC fell below $50,000 as there was a slight deviation between the spent and holding cost basis of Bitcoin.
Therefore, the markets appear to be largely stable regardless, squashing the probable bearish sentiments. Hence, the Bitcoin (BTC) price may trigger a healthy rise, attracting more liquidity in the coming days. Once the price settles above $65,000, the bearish activity may fade to a large extent, elevating the possibility of a continued upswing ahead.
