Bitcoin Whales Are Not Selling, BTC Has Strong Support Above $60,000
May 20 2024 - 1:00PM
NEWSBTC
Bitcoin is rising, recently breaking above $67,000, and heading
towards the all-important $70,000, a psychological round number.
One analyst took to X amid this uptick, noting that whales holding
over 1,000 BTC are not moving their coins to exchanges. Instead,
they likely expect prices to spike higher in the coming days and
weeks. Though movements over the weekend were muted, the extension
earlier today is overly bullish for optimistic traders. As BTC
prices edge, coin holders (and sometimes whales) usually take
profits, especially if gains are shaky and not as strong. Whales
Are Not Selling, More Gains Expected? However, the current cycle
looks like whales are holding on, expecting prices to recover
strongly. The analyst notes that the 30-day average is 641
BTC, with the reading decreasing sharply from mid-2023. This
means that whales are bullish and unmoved by short-term price
movements. Though this observation doesn’t necessarily mean bulls
expect a moonshot, they are holding cement the outlook that prices
might move higher in the coming sessions. Related Reading:
XRP Holders In Panic Selling Frenzy? Sub-$0.50 Looms Accompanying
the breakout above $66,0000, on-chain data shows that the
Market Value to Realize Value (MVRV) ratio is also rising.
According to the analyst, the MVRV ratio for those who have held
BTC for between 1 and 3 months has climbed above 66,500. This
expansion means they have exited the “unrealized loss” zone,
signaling a shift in sentiment among short-term holders. At spot
rates and prices trading above $66,700, above the $66,500 level,
HODLers are in the green and can exit for a profit or HODL. Bitcoin
Finds Strong Support Above $60,000 It remains to be seen how prices
will react in the short to medium term. However, another
analyst notes that over 530,000 BTC was traded at
$66,250. Accordingly, this line is turning out to be a strong,
reliable support. If bulls soak in the selling pressure, the line
at $66,250 can act as a reliable anchor for the next leg up toward
an all-time high. Analysts agree that the zone above $60,000
is a reliable support level. Taking to X, another analyst
said that the Bitcoin Short-Term Holder Cost Basis (STHCB) is
rising and stands at $60,700. Historically, the STHCB has acted as
a dynamic support during bull runs and resistance in bear
markets. In on-chain analysis, the STHCB is a metric that
tracks the average price at which short-term holders (those holding
BTC for less than 180 days, bought their coins. Related Reading:
Litecoin Put To The Test: Can LTC Break Through $94? Historically,
the STHCB has acted as a support level during bull runs and a
resistance level during bear markets. Currently, the STHCB sits at
$60.7K and is steadily increasing, suggesting a potential floor for
the price. Feature image from DALLE, chart from TradingView
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