In the last two weeks Bitcoin, showed a remarkable performance and managed to exceed $ 69,000, the highest level in history. This rapid rise provided investors with a profit of up to 40%, and the whales began to realize increasing profits.
As we reported as Koinfinans.com, analyst Ali Martinez, who examined Glassnode data, determined the profit realization trend and gave a sell signal for Bitcoin on March 12.
Over the last two weeks, there has been a 4.83% decline in the number of whales specifically holding 1,000 BTC or more. According to Martinez, this shows that large investors are “increasingly cashing out” their profits during the price increase.
“The latest data shows a significant trend among Bitcoin whales. “Those holding more than $1,000 in BTC are increasingly realizing more of their holdings, leading to a 4.83% decline in such BTC addresses over the past two weeks.”
Meanwhile, Bitcoin was trading at $72,140 at press time. BTC is up more than 40% from its high of $51,726 two weeks ago. Leader cryptocurrency It rose to $72,863 on March 11, providing an opportunity for BTC whales to realize their profits.
One of the highest Relative Strength Indices (RSI) in four different time frames stands out. BTC is showing an overbought status with the index above 70 points from the hourly RSIs to the weekly RSIs. On the daily chart, Bitcoin’s relative strength reaches an alarming 79.42 index points.
This technical indicator shows that there is a possibility of a correction for the leading cryptocurrency as investors decide to take profits. Moreover, Ali Martinez’s latest data supports the RSI analysis, indicating that the correction trend may have already begun.
Other Reasons for the Decrease in the Number of Bitcoin Whale Addresses
However, we must also consider Glassnode’s other reasons for the decrease in the number of Bitcoin whale addresses above 1,000 BTC.
Due to privacy and security concerns, each Bitcoin owner may have more than one pseudonymous address. Therefore, whales that previously held large amounts in a single address may take action to manage and distribute their assets. This may have a similar effect to what Ali Martinez describes as “increasing realisation”.
As a result, although on-chain and technical analysis can provide valuable insights, they often do not provide definitive conclusions. Investors and analysts should always consider context and all possibilities before making data-driven decisions. The cryptocurrency market is volatile and unpredictable and requires acting with the right knowledge and strategy.
