Bitcoin (BTC) price At the time of writing, it regained 69 thousand dollars and gaining the 68 thousand level is quite positive. However, it is difficult to be sure of the return without seeing closes above 72 thousand dollars. Moreover, Darkfost says that we have come to days when we need to be careful about whales.
Beware of Bitcoin Whales
First of all, we should approach the ongoing recovery with caution, as Bitcoin’s rise for more than 3 months has triggered further selling. BTC has surpassed $69,000 but we need to see closes above $72,000 to start relaxing. Moreover, rapid 5 percent gains have begun to occur in altcoins, and it is unclear what the weekend lack of volume will lead the markets to.
On-chain analyst Darkfost says whales are now more dangerous as their unrealized gains melt away. Sharing the chart below, the analyst pointed out the NUPL of big whales, meaning addresses holding more than 1,000 BTC. NUPL is a simple ratio used to evaluate hidden losses and profits. When it is high, unrealized profits dominate. Naturally, when it is low, losses dominate on paper.
“Today, the NUPL of this group of whales has fallen below 0.2. This is a level shown in yellow that has historically only been observed when the bear market is well advanced. This means that this group currently has almost zero unrealized profit.”
Historically, at bear market bottoms, these whales have often ended up with unrealized losses, but that is not yet the case today. It is necessary to be careful about this, because seeing these big players under pressure can lead to surrender and BTC and could push NUPL down even further. We have been able to observe this over the last few days, especially among the youngest whales.
“These whales are now taking their toll, and on some days these damages have reached very significant levels.”
So we need to be wary of this whale capitulation phase, which is currently the source of selling pressure.
Bitcoin (BTC)
Columbus, who looked at the trend line on the four-hour chart for the short-term outlook, said that it was broken at the time of writing and that the rise could start again by exceeding 72 thousand dollars.
“of Bitcoin Let’s see if it breaks the 4-hour EMA50 and 72 thousand resistance and rises again!” –Columbus
