The fear of collapse in the cryptocurrency market is gaining momentum once again, driven notably by the actions of prominent market players such as Machi Big Brother. This influential whale recently closed all his long positions, securing profits exceeding $33.8 million, which has become a primary reason for these growing concerns. In the daily Bitcoin 
$94,952 chart, a retreat has been observed twice at the $120,000 resistance level. While Ethereum 
$3,301 continues to rise, indicators show signs of overheating, and the weak volume during breakout attempts combined with divergences in indicators is heightening risk perceptions.
Technical Indicators Signal Risk for Cryptocurrencies
Bitcoin’s price failed at two separate attempts to breach the $120,000 level. The weak trading volume during upward movements reveals the absence of strong buying pressure. As the price moves within a narrowing band, the 26 and 50-day moving averages (EMAs) are approaching current levels. This situation could pave the way for sharp price movements if momentum diminishes.
On the Ethereum side, consecutive increases have pushed the price close to $4,700. However, the negative divergence in the Relative Strength Index (RSI) indicates that the strength behind the price rise may be weakening. The drop in volume during the last rise suggests that the buyers are losing momentum.
Motivation Behind Whales Closing Positions
The decision by the renowned cryptocurrency whale, Machi Big Brother, to close positions highlights both profit-taking and risk management strategies. Such moves by major investors are typically observed when prices approximate peaks, coinciding with increased interest from smaller investors. During this period, asset transfers result in the redistribution of liquidity in the market.
Bitcoin’s inability to surpass critical resistance and the technical weaknesses in Ethereum increase the possibility of a short-term pullback. However, if new buyer interest emerges, this movement might remain a correction within the long-term upward trend. Whether the cryptocurrency market can maintain its course depends on whether new demand can fill the gap left by major investors at the whale level.
