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Bitcoin Whales Dump $400 Million: Is BTC’s Rally in Trouble?

by Jack
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  • Bitcoin whales sold off $400 million worth of BTC, raising concerns about the recent rally.
  • Reduced HODLing shows weaker confidence, increasing the risk of Bitcoin falling below $100,000.
  • If selling pressure continues, BTC could drop to $91,918 or even $80,437. A push past $101,173 might spark a rally toward $108,000.
Bitcoin’s rally to $100,000 is facing fresh doubts. Over the past week, large Bitcoin holders — known as whales — have sold off a massive $400 million in BTC. This wave of selling is driving uncertainty in the market and could spell trouble for Bitcoin’s attempt to stay above six figures.

Whales Are Letting Go

Source: Bitcoin Large Holders Netflow. Source: IntoTheBlock  Data from IntoTheBlock shows that Bitcoin’s large holders netflow — which tracks the buying and selling activity of addresses holding more than 1% of Bitcoin’s supply — has taken a sharp turn. Just a week ago, the netflow was positive, with 28,570 BTC being accumulated when Bitcoin was trading around $97,885. But now, the tide has shifted. The netflow has dropped to -3,960 BTC, which, at the current price of around $100,954, translates to $400 million in sales by whales. This selling spree is a red flag. It suggests that big players are cashing out, which could put serious downward pressure on Bitcoin’s price.

Falling HODLing Confidence

Another worrying sign is the drop in exchange outflows. This metric measures how many BTC are being transferred from exchanges to private wallets. When people are moving their Bitcoin off exchanges, it usually means they intend to hold long-term (HODL).
But according to CryptoQuant, exchange outflows have been declining since December 11. This suggests that fewer people are HODLing and more are considering selling. If this trend continues, Bitcoin could easily slip back below $100,000.

Where Could Bitcoin Go Next?

Looking at the charts, the Moving Average Convergence Divergence (MACD) indicator is now in the negative zone. The MACD helps gauge market momentum, and a negative reading signals that bearish sentiment is building. If this selling pressure continues, Bitcoin’s price could fall to around $91,918. And if the bearish momentum gets worse — especially if whales keep dumping their holdings — BTC might plunge all the way down to $80,437.

Is There Hope for a Rally?

It’s not all doom and gloom. If buying pressure picks up and Bitcoin can break above the $101,173 resistance level, we could see a turnaround. In that case, BTC could rally toward $108,000. The market is at a tipping point. Whales are clearly on edge, and their selling could either cool down or intensify in the coming days. As we head into the end of the year, all eyes are on whether Bitcoin can hold its ground or if we’re in for a deeper correction.

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Jack
Jack Smith is a well-known author in the world of cryptocurrency. He has been writing about the crypto industry for several years, covering a wide range of topics from blockchain technology and cryptocurrency investments to the potential impact of decentralized finance.

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