- Bitcoin long-term holders realize a significant 92.7 million in profits.
- Metrics and indicators point to potential short-term price corrections.
Bitcoin [BTC] was trading at around $58,185 at press time. The king of crypto was testing a key support level at $56,427 at press time. This extremely important level corresponds to a significant trendline that has historically acted as a strong support in the past.
Source: Tradingview
Whales cash in, caution ahead?
According to whale realized profit data, long-term whales made over $92.7 million in profits not so long ago. Such huge profit-taking indicates cautious signals among these players and may portend a bearish trend ahead.
Historically, when the big market players start taking their cash home, there can be some short-term selling pressure. This resultant increased pressure may in turn create market uncertainty on Bitcoin.
Source: CryptoQuant
Exchange outflow points to bullish sentiment
In contrast, exchange outflow data indicates that substantial quantities of Bitcoin moved off exchanges, with a peak around August 9 hitting over 50K BTC.
By large, this is taken positively since it means investors are moving coins into cold storage, thus less probability of immediate sales happening.
Normally, reduced BTC’s on various exchanges translate into decreased selling pressure, which would sustain prices or even initiate a rally.
Source: Cryptoquant
Bitcoin liquidation risks loom large
Yet there is a serious risk on the horizon. If price crosses above $60k, then the liquidation heatmap shows more than 100 million dollars’ worth of BTC will be sold off in no time at all.
Thus, any upward movement will lead to massive liquidations, causing sharp fluctuations in prices.
Source: Coinglass
Volatility ahead for Bitcoin
Lastly, Bitcoin’s recent price action implies that the market may experience increased volatility.
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The $56,427 support level still remains significant; however, the $60k spot should be on watch as there is considerable liquidation pressure at this point.
In general, whale behavior, exchange outflows, and some technical aspects point to an attentive market status.
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