Bitcoin: A drop in these owners could spell trouble for BTC as…

  • Bitcoin whales drop to a new two-year low
  • Bitcoin also showed resistance at the $17,000 level

bitcoin [BTC] It managed to bounce back above the $17,000 price range. And while the current expectation was that it could continue to rise, activism suggests otherwise. According to a recent Glassnode update, the number of bitcoin whales has decreased.

Read bitcoins [BTC] Price forecast 2023-2024

A Glassnode update revealed that the number of whales holding BTC has dropped to the lowest levels in the past two years. According to the update, the number of whales is lower than it was on November 21. In addition, the latter is the date when Bitcoin fell to its lowest level in 12 months.

This decline often indicates that whales have sold out or that there is no strong demand from whales. The aforementioned observation may also be in line with the monthly decrease in the number of addresses holding more than 1,000 BTC.

Source: Glassnodeitcoi

Despite the notable low interest from whales, the current Bitcoin price level indicated a massive buildup of support for a slight bullish trend. This was particularly compared to the current lower month. In particular, it showed some resilience above the $17,000 price level.

Bitcoin price movement

Source: TradingView

But why has the price gone up even though whale participation has gone down? A possible explanation could be that retail traders have accumulated BTC aggressively. This may explain why the Money Flow Index (MFI) has been able to rebound significantly since the second week of November. It also explained why the uptrend was relatively weak or limited.

Assessment of prevailing retail bitcoin demand

A look at the shipping and receiving addresses supports the above conclusion that the retail sector is bullish. According to the latest Glassnode reading, the number of receiving addresses outnumbered the sending addresses.

In other words, the buying pressure outweighed the prevailing selling pressure. This explains why BTC managed to stay above $17,000 in the past few days.

Bitcoin address activity

Source: Glassnode

Also, the lack of more downsides may be supported by the fact that the foreign exchange balance has not increased. Instead, the balance of Bitcoin on exchanges was still at monthly lows. This was confirmation that there is no significant selling pressure to support further decline thanks to strong retail demand.

Bitcoin exchange balance

Source: Glassnode

Bitcoin is likely to continue moving sideways if current market conditions prevail. Low turnout may also mean that demand is still limited. Also, it may not gain more upside in the short term. Especially if the hash backlog is exhausted.

The current situation also indicates a possibility that selling pressure could be seen returning. On the other hand, traders could see continued bullish momentum if whales regain interest in Bitcoin.

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