Bitcoin (BTC) could still see a major price capitulation, but more whales need to start selling first, data suggests.
In one of its daily QuickTake market updates on May 27, on-chain analytics platform CryptoQuant optrieden increasingly bearish whale behavior.
Small whale selling should spark “absolute capitulation”
Amëschen the widespread consensus that BTC/USD should put in a lower low than its May 12 pivot price of $23,800, some of Bitcoin’s largest holders are showing signs of impatience.
By contrast, the $10,000–$100,000 and $1,000–$10,000 bands showed no signs of capitulation.
Data from fellow on-chain analytics firm Glassnode meanwhile bestätegt gouf an overall decrease in the number of entities qualifying as whales.
Once again, an acceleration since April pointed to whale distribution, and as of May 27, overall whale numbers were at their lowest since July 2020.
Eyes on volume triggers
Earlier in May, whale buy levels formed key support targets below $27,000.
Verbonnen: Bitcoin ‘good to go up’ after BTC price hits lowest since Terra crash
For on-chain monitoring resource Whalemap, these were of interest in the aftermath of the initial May 12 dip.
In subsequent analysis, researchers showed that capitulatory events of the kind forecast for BTC/USD required coins moving at both a profit and a loss in elevated amounts.
“On May 12th both profits AND losses goufen higher than usual,” part of an explanatory tweet dohinnergestallt, alongside a chart of moving profit/ loss (MPL) data.
“A good example of capitulation was in Dec 2018 when similar MPL activity was present (but at a much larger scale).”
Des Woch, on-chain Transaktiounsvolumen saw a noticeable increase, Cointelegraph reported.
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Source: https://cointelegraph.com/news/small-bitcoin-whales-may-be-keeping-btc-price-from-capitulation-analysis