Bitcoin is under pressure amid revelations that one whale is actively selling. Will Bitcoin sink to $70,000 despite general confidence of a strong price recovery?
Since March 2, Bitcoin prices have been on a free fall. Many holders thought the spike to $94,000 would ignite demand, lifting the world’s most valuable coin above the $100,000 level and even to all-time highs.
While this possibility cannot be discounted, the current price action is shifting heavily in favor of bears. Taking advantage of this bearish sentiment is one whale who has been actively shorting at key turning points.
According to Lookonchain, the whale is now in the money from its activities, raking in over $7 million in profits at spot rates. As the whale stacks more short positions, the address is betting on even sharper losses, possibly to $70,000, in the days ahead.
Bitcoin Whale Actively Shorting
According to Lookonchain, the trader began shorting on February 22, placing a short position at around the $96,500 mark. A few days later, prices crashed hard, sinking to as low as $78,000. It was at the $78,900 level that the whale exited the short, booking hefty profits.
Later, when former President Donald Trump announced the establishment of the crypto reserve, prices surged, momentarily bringing into focus the next hottest crypto presales to buy right now. At one point, the world’s most valuable coin spiked to over $94,300.
Analysts noted that the whale placed another short position between $92,449 and $92,636. Its take-profit orders are between $70,475 and $74,192.
If the trader’s prognosis is as successful as its past positions, then based on this whale’s conviction, it is highly likely that Bitcoin could slump to $70,000 in a bear trend continuation formation.
Presently, technical candlestick arrangements favor sellers. From the daily chart, Bitcoin has support at $80,000. BTC has been moving sideways for the better part of last week, but the move lower over the weekend suggests that sellers have the upper hand.
The only time this outlook will change is if Bitcoin cracks $96,000 and $100,000 on the upper side. If this happens, billions will likely flow to the next top-20 crypto to explode in 2025.
On the flip side, if buyers lose $80,000, the coin can easily slide to $70,000 as sellers double down, aiming to reverse gains from Q4 2024.
Traders Are Buying the Dip? Diamond Hands Slowing Down on Their Selling
While the whale is actively selling, betting on prices to correct lower, others are upbeat, expecting prices to recover. Lookochain analysts observe that one trader placed a BTC long position on Hyperliquid, staking $1.14 million in USDC. Meanwhile, another trader stacked several buy limit orders between $76,000 and $79,000, spending $4 million.
This suggests that, though BTC is weak, there is optimism among key players that prices will shake off this weakness and bounce strongly.
The good news is that this distribution has largely ended, with the reading snapping back to neutral levels, a relief for holders. While this plays out, active selling by the same cohort has subsided. The monthly average is down from 3.8% to 1.4%. This drop signals that the selling pressure from diamond hands is down, a relief for holders. Based on past events, whenever long-term holders pause selling on leading exchanges like Binance, prices tend to stabilize, even pushing higher.
