Bitcoin has been up by more than 10% since Nov. 11, although, technical indicators suggest that the cryptocurrency is currently facing ample selling pressures. Similarly, Ethereum too is having large sell-orders on its plate. Despite the bullish performance of both the cryptocurrencies, on-chain data reveals that whales are dumping their Bitcoin and Ethereum tokens at every upswing. This only indicates both cryptocurrencies will face further losses in the near future.
Bitcoin Whales Cashing Out Profits At Every Upswings
With Bitcoin, small investors remain bullish on the cryptocurrency. Although, whales are cashing out profits at every opportunity.
On-chain data from Santiment reveals that the number of addresses holding 10,000 to 100,000 BTC has dropped significantly over the past couple of months. For instance, during mid-November, seven whales have left the network or redistributed their tokens. That itself represents a decline of over 6.2% within such a short period of time.
The selling pressures behind Bitcoin might seem nothing alarming at first. Although, when considering the large investors holding coins between $19 million to $1.9 billion BTC these selling orders can signify losses up to millions of dollars.
However, considering the lack of supply barrier, Bitcoin might push above the sell signals and continue towards its rising rallies.
Selling Pressures From Ethereum Holders
Ethereum’s network activity is at its decline even if staking for ETH is at its momentum. Data shows that on-chain transactions greater than $100,000 have declined by 55%. Meanwhile, new addresses joining the Ethereum network have declined by over 47%.
Over the past weeks, whales have started dumping their cryptocurrencies in a move to cash out the profits. This represents a red flag for Ethereum’s price action in the near future.
On-chain data from Santiment reveals that the number of addresses holding 100,000 to 1 million Ethereum has declined by over 6.60% since Nov. 20. This represents a further increase in sell orders at the current price levels. It signifies that Ethereum will swing downwards in the near future.
Meanwhile, the Crypto Fear and Greed Index is at its record high of extreme greed among market participants. If the selling pressures continue, Bitcoin might lose support at $18,300 and aim for $14,000. While Ethereum might have to breakdown the $565 hurdle while going down to $400.