Bitcoin Holders Shedding Their Possessions: 16,800 Coins Moved to Exchanges at a Financial Detriment
Bitcoin's Uptrend Continues Amid Cooling Phase
Bitcoin, the world's largest cryptocurrency, remains in an uptrend on the 4-hour timeframe, but a rejection at all-time highs and subsequent consolidation signal a cooling phase.
In a recent spike, Bitcoin's price reached $124,500 before facing rejection at the $123,217 resistance level. A clean break below $118,000 could open the door to a deeper retracement toward $116,900 and potentially $115,000. However, reclaiming $120,000 will be key for Bitcoin to regain momentum and set up another push toward the $123,000-$124,500 zone.
Recent market corrections have shown a decrease in panic-driven selling among short-term Bitcoin holders. This reduction in panic selling can be indicated by several factors.
Whale activity shows mixed signals. While a massive sell-off of 24,000 BTC by a major whale triggered flash crashes and rapid price drops, there are also significant BTC outflows to cold storage, indicating some holders are choosing to hold rather than sell in panic. Moreover, the same whale is seen rotating capital into Ethereum instead of outright exiting crypto, reflecting strategic repositioning rather than panic liquidation.
On-chain metrics reveal institutional investors are accumulating Bitcoin at discounted prices during the bearish consolidation phase, contrasting with retail investors who appear more prone to selling at a loss. This divergence suggests that professional investors have steadier hands, possibly anchoring prices and reducing panic selling from the short-term retail segment.
The Crypto Fear and Greed Index remains a key barometer. Extreme fear typically triggers panic selling regardless of fundamentals. However, when sentiment indicators show less extreme fear, panic selling tends to diminish. Social media sentiment and Google search trends related to Bitcoin crashes also correlate with panic behavior; reduction in these negative signals implies calmer market psychology among short-term holders.
The Bitcoin price appearing to find support around critical technical levels, despite large sell-offs, indicates a market absorbing selling pressure better than during previous crashes, thus disincentivizing panic selling from short-term holders.
Meanwhile, Solana Network's TVL based on SOL has surged to a multi-year high. The pullback drove Bitcoin to retest the $118,000 area, where the 200-period SMA provided support. The 50-period SMA is still above the 100-period SMA, indicating a bullish trend despite recent selling pressure. Bitcoin is currently consolidating just below the $119,000 mark, reflecting market hesitation ahead of a potential retest of the highs. Traders will be watching for either a breakout above resistance to confirm continuation or a loss of support that could shift sentiment more bearish in the short term.
- Despite the cooling phase in Bitcoin's uptrend, investors continue to show interest in cryptocurrency, with institutional investors accumulating Bitcoin at lower prices during the consolidation phase.
- The recent market behavior suggests that technology plays a crucial role in managing selling pressure, as short-term holders seem to adopt a calmer approach, with a decrease in panic-driven selling and a higher tendency to hold their Bitcoin in cold storage.
