What’s keeping Bitcoin’s price below $42,000 in spite of $330 million outflows?

Saif Naqvi
Source: Pixabay

Bitcoin’s price has hovered around the $42K price level since the last major correction on April 11 but no breakout has taken place so far. While larger whales are still bullish on Bitcoin, a difference of opinion from smaller whales may just be pressurizing the world’s largest digital asset from climbing back to $45K.

Bitcoin Whales Activity

Source: Twitter

Bitcoin’s correction between 10-11 April came after a series of declines that started from $48K and stretched to $42K. Following the eventual drop to $39K, Bitcoin whales holding between 100-100K coins did step up their presence, but collectively, their holdings were still lower than each preceding month. This suggested that whales were less eager to rebuy Bitcoin after each dip that occurred this year.

Source: Twitter

Meanwhile, another $300 Million left Coinbase on Friday and shifted to cold wallets. With earlier outflows, a total of $1.6 Billion has now moved out of Coinbase since April 18. While this did show that institutional demand continued to exist, not all whales were equally bullish on Bitcoin’s prospect.

Source: IntoTheBlock

Collectively, large holders were engaging more in selling activity than buying. As per the chart, Large Holders NetFlow (addresses holding over 0.1% of BTC’s circulating supply) were down by 123% for the week, hinting that most address groups were bearish on BTC’s prospect below $42K.

Retail Interest To Rise After $45K?

Source: TradingView

The disparity among Bitcoin whales was evident on the chart. Even after larger whales purchased nearly 10% of BTC’s circulating supply last week, the price was still struggling to rise above the $42K mark. Yes, a breakout can create retail interest and drive BTC’s price back towards $45K but for the moment, a bearish narrative was still present.

It will be interesting to see whether larger whales continue to buy Bitcoin and eventually lure smaller whales into a similar trend. Until then, investors might have to wait a little longer for a $45K BTC.