The current market sell-off seemed to be nearing its end but has rather taken a new turn with Bitcoin plummeting below $40k, due to an overnight sell-off
Bitcoin (BTC) reached $39,770 on Bitstamp according to TradingView late on April 21, a three-day low, after bulls failed to grab control of short-term market action in an overnight dump.
Bitcoin and major altcoins prices have started to stabilize in recent hours after a late night dump that resulted in a large liquidation of long orders. Bitcoin (BTC) and Ethereum (ETH), the two most popular cryptocurrencies, have both dropped roughly 3% each in the last 24 hours.
The majority of the other major cryptocurrencies are also performing poorly. Solana (SOL), Polkadot (DOT), Terra (LUNA), and Avalanche (AVAX) have all dropped 5%, 5%, 1%, and 4% in the last 24 hours, respectively
The surprise market sell-off resulted in 77% of 75,198 traders betting on the market prices to go higher liquidating across the cryptosphere in the last 24 hours, bringing the total value liquidated to more than $300 million, according to Coinglass data.
Whales are split on Bitcoin’s short-term price movement, with roughly 5% of Bitcoin addresses with more than 10,000 BTC selling or reallocating their tokens in the last week. It looks like these Whales have resumed their portfolio rebalancing.
However, when looking at whale activities in general, there may be no predictable pattern but there may be redistribution going on at the moment. Rekt Capital, a trader and analyst, highlighted that the number of unique addresses holding at least 10,000 #BTC has formed a Higher Low.
This may be interpreted as the buying and selling among Bitcoin’s biggest hodlers is indicative of impending bullish momentum as the metric as suggested in the past.
The direction of Bitcoin’s price is now undetermined, and there are no clear clues as to what will happen in the months ahead. One thing is certain: as Bitcoin’s global popularity grows, demand will soon outstrip supply, forcing the price to rise once more.