Bitcoin pays the price as OG whales take profits: More losses ahead?

Key Takeaways

What is the main factor driving the recent sharp price decline in Bitcoin?

Bitcoin OGs and Megawhales have been aggressively selling, offloading over $17,000 BTC and increasing supply for selling.

What is Bitcoin’s short-term resistance and critical support level?

BTC must breach the $111,513 resistance for a rebound or risk dropping below $106,124 support to $103,571.

Since hitting $116k a week ago, Bitcoin [BTC] has faced massive downside pressure, dropping to a low of $106k. In fact, at press time, Bitcoin was trading at $107,758, down 2.79% on the daily charts.

Amid this market’s bearishness, long-term large holders have accelerated the downtrend by increasing the supply available for immediate selling. 

Bitcoin OGs are dumping

As Bitcoin struggles, three OGs have sold 17,265 BTC, considerably reducing their holdings.  

According to Lookonchain, Bitcoin OG (1011short) deposited 13K BTC, worth $1.48 billion, to Kraken, Binance, Coinbase, and Hyperliquid.

The second whale, Owen Gunden, has sold 3,265 BTC worth $364.5 million to Kraken. 

Darkfost also reported such whale activity — Notably, insider whale 19D5 (Hyperunit seller) has sold 1000 BTC through Kraken.

Source: CryptoQuant

In total, the whale has moved 2,455 BTC and deposited them into Kraken and Hyperunit, reducing his total holdings to 35,800 BTC. 

Surprisingly, these three whales are not an isolated case, as Megawhales have been selling aggressively. 

According to Checkonchain, on the 2nd of November, Megawhale Balance Change surged to 32.6k BTC, then dropped to 23.4k on the 3rd of November. 

Source: Checkonchain

In total, Megawhales have deposited 56k BTC into exchanges, more than they have withdrawn, reflecting intense selling pressure. 

Typically, when Megawhales turn to aggressive selling, it reflects a lack of market conviction, as they anticipate further downside. 

Even so, increased exchange deposits from this cohort raise the supply available for immediate selling, thus accelerating further downside risk.

Which way for BTC?

According to AMBCrypto, Bitcoin has declined sharply on its price charts amid aggressive selling by long-term whales.

As recently observed, increased selling by whales has historically led to lower prices. Therefore, these market conditions position BTC for more losses on its price charts.

If Megawhales and OGs continue dumping, BTC could breach $106,124 support and drop towards $103,571. However, if retail, especially shrimp, accelerates their accumulation rate, they could offer some support.

In doing so, it will leave BTC well-positioned to rebound towards $111,513. This retail-driven rebound depends on positive macroeconomic data hitting the market.