Key Insights
- Bitcoin (BTC USD) slides to new 6-month low after losing its $90,000 support, with liquidations approaching quarter of a billion dollars.
- Mega whale that held BTC since 2011 liquidates 11,000 BTC worth $1.3 billion, contributing to the sell pressure.
- Whale addresses with over 100 BTC clock new ATH.
The price of Bitcoin has officially tanked below $90,000 after losing its footing due to weak demand and sustained sell pressure. This consequently resulted in another liquidation event with longs bearing the pain.
Quite a number of investors expected the price of Bitcoin to bounce back from the $90,000 price level. This was evident by the ratio of longs versus short liquidations.
The total Bitcoin (btc usd) value liquidated in the last 24 hours surged over $413 million in the last 24 hours. The bulk of those liquidations were longs, at $369 million, while shorts were a fraction of that figure at just over $43 million.
This latest wave of liquidation occurred after Bitcoin experienced a mid-week spike in positive funding rates. These liquidations may have pushed BTC much lower with price dropping to 6-month lows.
Bitcoin (BTC USD) Mega Whale Dumps Over $1.3 Billion Worth of BTC
Speaking of liquidations and sell pressure, it emerged that one of the biggest sellers in the last 24 hours was a mega whale.
This particular whale has been in the game since 2011 and offloaded over 11,000 BTC whose value was worth over $1.3 billion.
The data also revealed that the particular whale sold off all its holdings. This kind of sell pressure highlights the recent panic selling in the market.
While this particular whale contributed a great deal to the declining Bitcoin (BTC USD) value, it was not necessarily a reflection of all whale activity.
Interestingly, whale activity in the last 24 hours suggests that pivot expectations were on the rise. Large order book data revealed that whales executed spot buys worth over $65 million near the $85,000 price level.
Perpetual trades were orders of magnitude higher than spot, with Binance alone bringing in over $1.1 billion worth of longs in the last 24 hours. OKX whales executed $459 million in long positions.
Such whale activity is historically linked to buying the dip and could be linked to dollar-cost averaging. However, such buy zones were observed at zones where the bears cooled down.
In other words, demand from whales may not necessarily confirm that a pivot will occur, unless that demand is sustained.
Whales stack up on Bitcoin as price pushes lower
The Bitcoin BTC USD freefall over the last few weeks triggered concerns that the bull market might be over. However, some analysts claim that the pullback may be a normal occurrence especially considering the growing institutional interest.
whale activity may collaborate with those expectations. This is because whale data confirmed that they have been taking advantage of the discounted prices.
According to the above data, whales holding between 100 and 10,000 BTC have been adding to their balances in the last 12 months.
Moreover, this category of whales now holds record high amounts at over 12 million BTC. In other words, the whales have been taking advantage of the declining Bitcoin value to increase their balances at discounted levels.
This whale activity may offer the confidence boost that the market desperately needs especially with the sustained Bitcoin (BTC USD) downside crushing demand.
Whether this demand could trigger a pivot remained unknown. Sustained sell pressure could potentially push the price of Bitcoin even lower even though it was deep in oversold territory at the time of observation.