Key Takeaways
Bitcoin faces selling pressure after making a new ATH with the Satoshi-era whale escalating the scale. However, the question now is whether BTC’s pullback can take its price below the $110K zone.
Bitcoin [BTC] made a new ATH of $122,838 this week, reigniting the buzz around the king coin. This came at a time when the U.S. streamlined its regulations to ease the adoption of Bitcoin and other cryptocurrencies.
As the price of BTC broke above the $120,000 mark, a shift in sentiment was noted. The Bitcoin Whale Position Sentiment showed that selling was becoming increasing dominant, sitting at 0.75 at press time.
Source: Alphractal
The whale position indicator showed that the big players in the crypto markets were potentially taking profits. Notably, the Cumulative Volume Delta (CVD) showed dominant selling while the Open Interest declined.
How Satoshi-era whale is fueling selling pressure?
More analysis confirmed the aforementioned sentiment from the Buy/Sell Pressure indicator.
The sell-side was slowly rising, with the reading at the time of writing at 0.6. On the other hand, buying was declining, with its value at the neutral level and heading toward the negative zone.
Source: Alphractal
The data showed the delta was at about 5 from a high of nearly 40 in the last few days.
This was affirmed by the divergence in the Buys/Sells but did not pose any threat as markets tend to undergo corrections after hitting new peaks. That way, institutions and other market participants saw it as normal pullback.
That said, the existing pressure had been heightened by the rising activities of dormant whales who accumulated in the Satoshi-era.
From Onchain Lens data posted on X, the whale who moved 80,000 BTC a few weeks ago had resurfaced. The whale transferred 9,000 BTC worth about $1.06 Billion to Galaxy Digital and marking his first cash-out.
Source: Onchain Lens
These actions showed that OTC markets were their cash-outs avenues due to their fast Fiat flows in the globe and reduced to almost no slippage.
Will the pullback take BTC below $110K?
With that in mind, the Aggregated Liquidation Levels Heatmap showed potential zones where price could react to as the new-ATH hype unfolds.
As BTC traded in what can be termed as a correction, two zones hint at potential supports. The concentration of liquidity at the $115,000 and $108,000 affirmed BTC could fall toward these levels.
Source: Alphractal
If price falls to these levels, buyers could kick in and take the prices up. The zones represented where traders were anticipating a potential reversal for trend continuation.
Additionally, more liquidity rested at the $143,000 to $146,000 price zone. These showed that, once BTC did a rebound, its next targets were above the $140,000 price level.