Bitcoin has been under tremendous selling pressure from Whales ever since it reached its All-time high of $ 61,712 in March 2021. This was revealed by Byzantine General, a pseudonymous Bitcoin trader and technical analyst couple of weeks ago. It was one of the few and the primary reason why the price of Bitcoin took such a massive fall in that week.
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However, BTC seems to be recovering from that bearish phase. Even though it has seen a weekly price dip of 2.55% at the time of publishing this article, the price has increased up to 3.39% compared with its price this time, yesterday. Currently, it is valued at $ 58,619.
The bullish phase has started to make the market optimistic again. Market experts believe that Bitcoin could very well see its All-time high again or could even surpass it. This is not just a mere hunch but a calculated & measured analysis. We look at few reasons why Bitcoin can see or surpass its All-time high soon.
No selling pressure from Whales
The reason why Bitcoin has seen strong resistance near $ 60k mark is directly related to whales. Whale is a term used to address the bitcoin addresses which have a balance of 1000 BTC or more. These are stock holders and they manipulate the market at their will.
According to a report published in Glassnode, the amount of whales in BTC market has reduced by 10% in the last 2 months. It indicates a large sell off of the coin which is why BTC has not been able to gain any strength. Even though it reached its ATH at $61k in this period, it couldn’t stay firm and the price fell down to as low as $51,100 in last 3 weeks.
However, the good news is that the whales are back at the level last seen in December 2020 which was the tentative time where Bitcoin prices had started rising. The same report suggests that the whales could be finished with selling now.
Miners turning into gatherers again
The last time Miners were reluctant into selling their mined Bitcoins was 3 months back, the time when the prices had started to rise. As per the Glassnode report, it is observing the same trend again where the miners are holding back their BTC instead of selling them which means they are expecting a price rise in near future.
There are various reasons for why Miners have to sell their BTC. One is to cover their costs of mining. Since, their major source of revenue is Bitcoin mining only, they tend to sell it after mining to cover their life expenses. However, this time a huge number of miners have decided to accumulate their Bitcoin instead of selling.
Institutions planning long term investments
Big institutions have halted depositing Bitcoins on exchanges. More and more bitcoins are being withdrawn from exchanges and stored into Hardware wallet. No, this is not just for security purposes but this also means that more and more Bitcoin is going to cold store, i.e, offline.
This is nothing unusual for institutions as they plan on making long term investments and prefer safer custody instead of leaving Bitcoin susceptible to virus attacks if they have to store digital currency for a long time.
Long-term hodlers hodling Bitcoin
Much like whales, the long-term hodlers (people who store a cryptocurrency) have stopped selling off bitcoins these days. Citing the Glassnode report again, since the beginning of the year, long-term hodlers have slowed down the selling process.
The selling has come back to the initial 2020 level which had triggered the sell off. It suggests that long-term hodlers have become increasingly confident in a higher Bitcoin price in the near future.