Bitcoin Rally: Retail Investors Exit as Whales Double Down on Holdings
Bitcoin Rally Stalls as Retail Investors Withdraw, While Whales Accumulate
Retail Selling Activity Increases Amidst Bitcoin’s Price Surge
Recent trends indicate that Bitcoin’s rally in July is losing momentum among retail investors, particularly in the U.S. and South Korea. Selling pressure has intensified in these markets, even as larger investors, often referred to as “whales,” continue to accumulate significant amounts of Bitcoin.
Analysis of Market Trends
A detailed examination by CryptoQuant contributor Arab Chain highlights a decrease in demand from American and Korean traders. The Coinbase Premium Index, which measures the price difference between Coinbase and other global exchanges, has remained stagnant or even negative, despite Bitcoin reaching a record high of $122,838 on July 14. This suggests that U.S. investors are more inclined to take profits rather than increase their holdings.
Similarly, the Korea Premium Index indicates that local traders are offloading Bitcoin at prices lower than those on global exchanges, signaling a lack of demand and ongoing distribution.
Retail Behavior on Trading Platforms
Further insights from CryptoQuant contributor Amr Taha reveal that retail inflows on Binance have surged from $12 billion to over $16 billion in just 30 days. This uptick suggests that retail traders are depositing Bitcoin with the intention of selling, rather than accumulating.
This trend mirrors earlier patterns observed when Bitcoin rose from $78,000 to $111,000, during which retail investors exited the market and missed out on further gains.
Whale Accumulation Contrasts Retail Trends
In contrast to retail activity, whale investors are showing strong accumulation behavior. Data from Whales Screener indicates that whale wallets withdrew nearly $200 million in Bitcoin and over $400 million in Ethereum from exchanges within a 24-hour period leading up to July 22. Such outflows typically reflect a long-term bullish sentiment and a reluctance to sell during a price rally.
Current Market Status and Technical Analysis
As of the latest updates, Bitcoin is trading at approximately $117,945, reflecting a slight decline of 0.2% over the previous day and a 4% drop from its all-time high. However, the cryptocurrency has still gained 14% over the past month.
Despite this minor pullback, Bitcoin remains in a confirmed upward trend on the daily chart, staying above the 21-day exponential moving average and the ascending trendline established in mid-June.
The relative strength index (RSI) is currently around 57, indicating that there is potential for further growth without the market becoming overbought. Key support is identified near $115,000, while resistance levels between $120,000 and $122,800 are crucial for any potential breakout.
Future Price Scenarios
In a bullish scenario, Bitcoin may stabilize above $117,000 before attempting to retest and possibly surpass its previous record high. Conversely, a sustained drop below $113,500 could signal a bearish reversal, exposing $108,000 as the next significant support level.
