Bitcoin Stumbles Amid Reports of Intense HODLing by Whales

Bitcoin (BTC) traded within a sideways range between $62,000 and $63,000 over the past week, amid echoes of crypto regulatory talks, following the recent BTC exchange-traded fund (ETF) launch in the US.

Meanwhile, data from analytics provider Glassnode suggests that BTC HODLers have refused to liquidate their holdings despite the recent price rally. The platform revealed that the illiquid supply for the benchmark cryptocurrency recently touched a new all-time high of 14.52 million. Interestingly, this data comes amid a purchasing frenzy by whales.

According to a Chainalysis report, whales have purchased a whopping 142,000 BTC over the past week. The data added that wallet addresses holding over 1,000 BTC control the highest supply of coins in 2021.

The report detailed that whales held about 185,000 BTC in February but sold huge chunks in May, following the toppling of a new record high. However, as of the last week of October, whales had added 142,000 BTC, pushing their collective holding over 200,000.

Santiment reported via a recent tweet that the BTC network recorded a significant amount of active addresses over the past five days. The tweet from Santiment detailed that:

“#Bitcoin has had 5 straight days (excluding historically slow weekends) of over 1M active addresses interacting on the $BTC network. This rise is an encouraging sign that another #AllTimeHigh can inevitably be tested.”

Key Bitcoin Levels to Watch — November 4

BTC has gotten detailed from its bullish trajectory to the $65,000 area following a recent announcement by the US Fed on ‘tapering’ stimulus spendings. The primary cryptocurrency slumped briefly to the $60,000 following the news but returned to the upper-$62,000 area.

However, bulls could not sustain this rebound, causing the price to fall towards the mid-$61,000 area, buoyed by my 4-hour 50 SMA.

That said, I expect to see a bearish continuation over the coming hours to the $60,000 support, again. From that level, the next course of action (directional bias) should emerge.

Meanwhile, my resistance levels are at $62,000, $63,000, and $64,000, and my key support levels are at $61,000, $60,000, and $59,000.

Total Market Capitalization: $2.73 trillion

Bitcoin Market Capitalization: $1.16 trillion

Bitcoin Dominance: 42.9%

Market Rank: #1

 

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