As Bitcoin fans eagerly await the upcoming halving event, new data shows that the cryptocurrency may have reached its lowest point, with institutional investors and “whales” sending mixed messages.
CryptoQuant data shows that short-term Bitcoin whales—investors who have held at least 1,000 BTC for up to 155 days—are only seeing a small 1.6% unrealized profit on their purchases, even though the price of BTC recently fell below $60,000. This means that this group may not be able to put as much pressure on you to sell soon.
Long-term Bitcoin whales, on the other hand, have held at least 1,000 BTC for more than 155 days and are sitting on a sizeable 223% unrealized profit. This shows that they are confident in the future direction of the cryptocurrency.
Bitcoin Miners Cautious Amid Rising Profits
Also, small miners are making a good 131% unrealized profit, but major mining companies are being cautious. Bitwise says that the top five mining companies have slowed down their selling a lot, even though they have an 81% net profit. In the first quarter of 2024, they hit a two-year low in sales.
Technical experts also see a chance for Bitcoin’s fortunes to change for the better. Some people think that a “double bottom” pattern may have formed because of the recent price changes, which include a drop below $60,000 and a rise back up to $65,000. On top of that, important technical measures like the relative strength index (RSI) have returned to neutral after being overbought.
Arthur Cheong, founder and chief information officer of DeFiance Capital, thinks there’s a “very high chance” that Bitcoin’s latest drop was the city’s bottom.
Satoshi Flipper, a famous crypto dealer, has also looked at the charts and said that Bitcoin may be planning a move towards $72,000 after breaking out of a major channel on the 4-hour chart.
But not all of the signs point to the price going up. Data from Dune shows that institutional net inflows from U.S. spot Bitcoin ETFs have turned negative in the week before the halving, with over $147 million in net withdrawals as of April 18. People say that the recent drop in Bitcoin’s price is due to this slowing of ETF inputs.
Denis Petrovcic, CEO and founder of Blocksquare, is still positive, saying that Bitcoin’s price is about to go up because the half event is coming up.
While some might anticipate a drop post-halving, the sustained institutional interest and decreased block rewards should keep BTC prices stable or slightly bullish, avoiding the typical ‘sell the news’ fallout. Denis Petrovcic
