Bitcoin [BTC] is not making waves anymore. After an unprecedented ride, in the first quarter, the trend has changed drastically. While it still continued to be the undisputed market leader, its dominance has declined to 40%. After getting caught on to the bearish trend, the BTC whales have resumed selling and short-term prospects are looking a little bleak.
This was revealed by the blockchain intelligence firm Santiment which noted that the Bitcoin holders holding 100 to 10k BTC have moved more than $5.7 billion worth BTC from their wallet. Its tweet stated,
“Our data indicates that the high-alpha group of ‘Bitcoin Millionaires’ holding between 100 to 10,000 BTC have now shed 120,000 coins ($5.74 billion) from their wallets in the last 5 weeks. This is the least amount of coins held by this group since Feb. 10.”
In line with this trend of high selling pressure, the analytic platform also revealed Bitcoin’s supply that is sitting on cryptocurrency exchanges has currently bounced back to its highest level since the 14th of January this year. This essentially meant the amount of the tokens being deposited into exchanges has risen was indicative of fear and less confidence among the investors in the BTC market.
Interestingly, 14th of May also marked the largest day of exchange inflows since the Black Thursday crash in March last year.
In addition, the supply of Tether [USDT] was close to 2021-low. This was a cause of concern since it could suggest that investors are reluctant to buy the latest dip.
But Bitcoin Could In Fact See More Gains
According to PlanB, Bitcoin still has a lot of levels to climb before the bull season closes. In the latest tweet, the analyst well-known for applying the stock-to-flow [S2F] model to Bitcoin, has forecasted that the digital currency could register another meteoric rise in the coming months in the midst of massive downside correction.
PlanB stated that
“Bitcoin’s relative strength index (RSI): we are at the typical mid-bull-cycle drop in RSI (yellow circles), between 2013 and 2017. Excited about the next couple of months.”