Bitcoin’s momentum appears to be waning. Large-scale transaction activity on blockchain networks, including support and resistance levels, is declining sharply.
The reduction of transaction volume among whales was significanrp a loss of interest of large-capital individuals in this latest price drop, and, as a result, a significant decline in liquidity and volatility.
At press time, the coin is trading at $66,&96.74 with a decline of 0.86% over the past 24 hours.
Chart Shows Clear Downtrend Structure
The TradingView chart shows a clear downward trend for BTC, with a series of lower highs defining the price action since January of this year.
The last major price spike was near $95,000; therefore, accumulation of BTC above $89,000 has proven to be unsustainable, leading to further price declines as a result of the price correction.
Near-term support for bitcoin prices should be around $67,000; however, movement below this price level could lead to the $62,000-$64,000 range. Additionally, should there be a recovery in bitcoin prices to the $75,000-$80,000 price range, then we may see the stabilization of short-term momentum in the future.
Overall, the price trends of downward supports are consistent with declining levels of whale participation, indicating that large traders are not attempting to accumulate at this time.
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Whale Data Highlights Participation Drop
In addition, on-chain metrics from Santiment confirm the decline in large-scale (whales) trade participation, with the number of high-value bitcoin transactions declining from 5,767 bitcoin transactions to only 1,637 bitcoin transactions.
Therefore, indicating that the majority of large bitcoin holders have significantly reduced their trading activity in bitcoin.
Traditionally, when such large declines in the activity of large traders occur, either prior to the reduction of volatility in the market or a period of time when larger price movements will likely occur, will take place once the larger participants return to the market to trade.
The synchronized drop in whale transaction numbers and their corresponding prices indicates a temporary liquidity hold off rather than solid distribution.
BTC may take its next big swing depending on whether large holders come back into the market and support it or if they are kept on the sidelines while the market is under consolidation.
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