- The indicators reveal that Bitcoin is overvalued.
- If the price decline continues, BTC could fall to $53,000 again.
Bitcoin [BTC] Bulls managed to push the coin’s price to a promising high last week. However, the trend has changed in the past few hours, with the daily chart of the king coin turning red again. Notably, whales sold large amounts of BTC just before the price began to drop.
Are Bitcoin whales selling?
Lookonchain recently Tweet Whale activity has come to light. According to a tweet, a whale sold 500 BTC (worth $30.07 million) shortly before the BTC price began to drop. The whale made three swing trades with BTC, but only the first one was profitable, while the next two trades were losses.
Given the significant amount of BTC sold by whales, AMBCrypto checked other datasets to see if the overall selling pressure from whales was high.
According to an analysis of Glassnode data, the number of addresses with balances of 10 BTC or more has decreased in the last week. The decrease in this metric means that larger players in the cryptocurrency industry have been selling BTC, which may have caused the BTC price to drop in the past 24 hours.
Source: Glassnode
To be precise, BTC has fallen by over 2% in the past 24 hours. At the time of writing, it was trading at $58,789.75. Separately, according to data from Hyblock Capital, whale exposure in the market has also decreased in the past 24 hours.
This was the case when Bitcoin's whale-to-retail delta dropped from 64 to 0. First, when the whale-to-retail delta drops to 0, it means that retail investors and whales have equal exposure in the market.
Source: Highblock Capital
But whale behavior isn't the only reason for this price drop. AMBCrypto found that the BTC to NVT ratio is also rising. Generally, an increase in this metric means that an asset is overvalued, which often leads to a price correction.
Source: Glassnode
What to expect from Bitcoin
AMBCrypto then checked the weekly chart of the crypto king to see what could happen if the bears continue to push the coin’s price down. According to our analysis, if the price continues to fall, BTC could once again push to the support near the $53,000 mark.
read Bitcoin [BTC] Price Prediction 2024-2025
If it breaks below the support, BTC could fall to $43,000. Reported We previously noted that BTC price is likely to rise, and one of the reasons for this is that Bitcoin’s NVM ratio has fallen.
If BTC bulls gain the upper hand, the coin will first approach the resistance near the $61,000 level. A successful breakout could see BTC target $68,000 in the coming weeks.
Source: TradingView
