With expectations of a BTC spot ETF and the approach of the halving, a rally environment has been formed in cryptocurrencies. Amidst the increase in cryptocurrency prices, inquiries about whether a new decline will occur have started to increase due to Bitcoin (BTC) sales conducted by some investors.
Sudden Bitcoin Sales
According to a post published on December 22 by famous cryptocurrency analyst Ali Martinez, it was revealed that Bitcoin whales sold approximately 50,000 BTC worth $2.20 billion in the last week.
These sales transactions could lead to rumors in cryptocurrency circles that the Bitcoin rally is coming to an end and could increase concerns. However, the real reason could be very different and may not trigger any decline at all.
The reason behind the large sales could be the desire to take profits due to the significant uptrend in Bitcoin over the past weeks, rather than to drive down the price.
The noticeable rise in Bitcoin’s price seems to have caught the attention of institutional and individual investors. This situation appears to have provided an opportunity for some investors who have been holding BTC for a long time to realize significant profits. Despite all these comments, the exact reasons behind the whale transactions continue to be mere speculation.
The profit-taking action by whales in Bitcoin seems to parallel the 89% profitable supply rate that BTC had before the end of the year. According to a post published by Santiment on December 21, a more favorable range for potential price increases in BTC prices could emerge when the metric possibly retreats to the 40-70% range.
Bitcoin Price Analysis
As of writing time, BTC is trading at a price level of $43,653, with a 0.8% price decrease in the last 24 hours. Despite today’s minor decline, the price has seen a 4.07% increase over the last 7 days, and a 17% increase over a 30-day period is observed when examined on a broader scale.
Since last December, the price of BTC has experienced a significant increase of over 160%, giving investors renewed hope. The leading cryptocurrency has performed better than 72% of the top 100 cryptocurrencies over the past year. As the end of the year approaches, whether the price will reach the closely watched $50,000 level by analysts remains a subject of curiosity.
