Bitcoin Sees Bullish Slowdown as Whales Continue Retail Supply Squeeze

16 September 2021 | Updated: 16 September 2021

On-chain analytics provider Santiment has warned Bitcoin (BTC) retailers that millionaire-tier whales could be pushing them out of the market. The analytics firm revealed that whale addresses holding between 100 to 10,000 BTC dumped their holdings around September 6-7.

Santiment noted that after retailers booked profits following the recent 15% crash, these whales acquired BTC again. Millionaire-tier whales have purchased about 60,000 BTC over the last three days, triggering a 5% surge. Santiment notes that this is a classic case of pump and dump by whales to squeeze supply from retail investors.

Meanwhile, co-founders of Glassnode “Yann and Jan” reported a similar observation, noting in their latest update that:

“A few #Bitcoin holders were shaken out over the last week, realizing losses on-chain. Stronger hands stepped in and bought the dip. As $BTC breaks above $48k, net realized PnL has returned positive, and the market is absorbing those profitable spent coins.”

However, old Bitcoin hands appear to be unfazed by the recent heightened BTC volatility. “Old hands” is a label given to investors holding BTC for over a year. Also, the Spent Volume Age Bands (SVAB) metric shows that the spending of old coins has dropped to multi-year lows. This report highlights the immense conviction among old hands in the market.

Key Bitcoin Levels to Watch — September 16

The benchmark cryptocurrency has posted a solid 11% reemergence from its recent fall near the $43,000 line as retail buyers return to the market. However, bulls have lacked the coordination to break the $48,500 resistance causing the price to oscillates between $48,500 and $47,600.

BTCUSD – 4-Hour Chart

That said, a break above the mentioned resistance level should open the doors to another sharp rally towards the $50,000 psychological mark, especially considering the added bullish pressure from our 4-hour ascending trendline.

Meanwhile, our resistance levels are at $48,500, $49,500, and $50,000, and our key support levels are at $47,600, $47,000, and $46,000.

Total Market Capitalization: $2.18 trillion

Bitcoin Market Capitalization: $898.2 billion

Bitcoin Dominance: 41.1%

Market Rank: #1

 

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.