The increasing influx of bitcoins to exchanges from whales suggests a potential risk of future sell-offs, according to CryptoQuant.
Experts explained that the aSOPR metric “does not yet indicate significant profit-taking activity.”
Amid the activity of large players, exchange balances of digital gold have generally fallen to 2.46 million BTC — the lowest level in recent years. This reduces the number of coins available for immediate sale, affecting the dynamics of supply and demand.
According to CryptoQuant, after Donald Trump’s victory in the U.S. presidential election on November 5, users withdrew over 171,000 BTC from CEX.
The 30-day change in demand from retail investors reached its highest level since 2020. This surge explains the resilience of the leading cryptocurrency amid the onset of profit-taking by hodlers.
Trader and analyst Rekt Capital expressed confidence in the return and consolidation of the leading cryptocurrency’s price above $96,400.
Bitcoin continues to retest the series of Lower Highs as support
Producing longer and longer downside wicks
Grabbing liquidity at lower and lower prices without losing the trendline
As long as this continues, BTC should be able to reclaim the ~$96400 support$BTC… https://t.co/AB1izNbYO7 pic.twitter.com/g9gzNXRwN5
— Rekt Capital (@rektcapital) December 4, 2024
“Bitcoin continues to test a series of lower highs as support, forming increasingly longer shadows. Capturing liquidity at progressively lower prices without losing the trendline,” the expert commented.
Bitfinex has forecasted a rise in the leading cryptocurrency’s quotes above $100,000 by the end of the year.
ARK Invest shares a similar view, citing a target range of $104,000 to $124,000 for this period.