Major red flag rises

Just yesterday, we remarked how large speculators were seemingly devoted to holding their coins despite steep price tags. However, new data reveals that large speculators took a major step toward liquidating their positions overnight, reflected in a significant drop in the number of Bitcoin addresses with balances exceeding 1,000 BTC. This is a highly concerning development for bulls, considering Bitcoin’s recent rejections at $70,000 and the overbought stock market, which stays highly correlated with the cryptocurrencies.

Technical conditions
Daily time frame = Slightly bullish (turning neutral)
Weekly time frame = Bullish (losing momentum)
Monthly time frame = Bullish

Bitcoin addresses
The number of Bitcoin addresses with balances exceeding 1,000 BTC fell from 2,135 to 2,072, marking the biggest single-day move down since late February 2024. A significant drop can also be observed among the number of Bitcoin addresses with balances exceeding 100 BTC.

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DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor or any other entity. Your own due diligence is highly advised before entering a trade.

Commento:

Illustration 1.01

Bitcoin nears the alternative trendline, acting as support.