Bitcoin Faces Selling Pressure As Big Whales Move Older Coins

Since the introduction of the Bitcoin ETF last week, Bitcoin’s price has shown modest performance, hovering around the $42,000 mark. Despite a spike to $48,000 during the ETF certification process, significant selling pressure has emerged in the aftermath.

Reports from Santiment reveal that prominent Bitcoin wallets are swiftly liquidating older coins, leading to a notable drop in the average age of coins within these wallets.

The average age has decreased from 640 to 624 days, signaling a potential interruption in the ongoing bullish cycle. This shift in coin movement could temporarily pause the current upward trend.

💸 In anticipation of the #BitcoinETF approvals that finally went through last Wednesday, large #Bitcoin wallets were moving older coins at a high rate, pushing the average age of coins sitting in their wallets down significantly. There are mild signs that this

(Cont) 👇 pic.twitter.com/koOXGRSBF0

— Santiment (@santimentfeed) January 15, 2024

Bitcoin Sets Eye To $50,000 Level

However, there is speculation that a few substantial whales might initiate significant coin transfers, further reducing the mean dollar invested age of Bitcoin. This could potentially trigger another wave of testing resistance levels, including $45,000 and possibly $50,000.

In addition, there is a growing concern about the impact of U.S. stock ETF trading on cryptocurrency prices. Large put options, amounting to $120 million and representing 16% of the total volume, have seen notable trades – a significant increase compared to average trading days.

The market witnessed a dominance of selling short-term put options in individual block trades exceeding $5 million, while the purchase of short-term puts prevailed in smaller orders.

Whether or not U.S. stock ETF trading will continue to drive cryptocurrency prices lower today is the main game in town.
Looking at today’s block trades, $120 million, or 16%, was traded in large put options, which is significantly higher than on a normal day. Individual block… pic.twitter.com/trfqW8uRSY

— Greeks.live (@GreeksLive) January 16, 2024

As the cryptocurrency market navigates the dynamics influenced by both internal factors like coin movement and external factors like stock ETF trading, Bitcoin faces a complex landscape with potential shifts in momentum and volatility in the near term.

Traders are closely monitoring these developments to gauge the future trajectory of the leading cryptocurrency.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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