In the near term, Bitcoin’s price could slip below $50,000 as the number of “whale” addresses declines to a year-to-date low. Delta crypto-platform CEO Pankaj Balani holds this view, CoinDesk reports.
The publication, citing Glassnode data, noted a drop in addresses with 1,000 BTC or more by 3% over the last five days — to 1,943.
Negative momentum has been visible since February 7, when the record high (2,237) was registered.
“The data look bearish. The trend of whales divesting their assets is evident.”, Balani said.
From October 2020 to February 2021, the number of such addresses rose alongside the price of “digital gold.” This reinforced the popular thesis that large investors were the primary driver of market growth.
The current divergence between price and the metric creates risks of a near-term decline in Bitcoin’s price.
Since mid-March, prices have traded in the $50,000–$60,000 range, helped in part by retail investor support.
Balani argues that traders’ attention to Ethereum and to other coins is leaving Bitcoin’s position vulnerable.
“The move on Monday [the price fell 4.2% on Bitstamp] looks like a convincing signal of a forthcoming decline,”, the specialist said.
Earlier, Arcane Research analysts said that the altcoin season has definitely arrived.
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