Bitcoin (BTC) Under Pressure: Whale Deposits $72 Million on Crypto Exchange

Earlier this week, a prominent Bitcoin whale caused a stir again by depositing 778 BTC, worth about $72 million, into the crypto exchange Kraken. This deposit is part of a larger trend, with the same whale transferring a total of 3,038 BTC (about $286 million) to the exchange since December 20. These transactions coincide with a recent market downturn and follow a consistent pattern. Despite these massive outgoing transactions, the whale still owns an impressive 24,665 BTC, worth about $2.27 billion.

The Impact of Whale Activity

Whale transactions like these can have a significant impact on market sentiment and Bitcoin’s (BTC) price fluctuations. The repeated depositing of large amounts of BTC on Kraken may indicate a planned liquidation strategy, possibly anticipating volatility or other unknown market factors. Such large sales can further pressure prices, worsening the already fragile market conditions for Bitcoin.

At the moment, Bitcoin is trading at $92,367, a slight decrease of 1.1% on a daily basis. The price remains stable within a narrow range of $91,375 to $94,838, indicating low volatility. However, since December 20, Bitcoin has experienced significant downward pressure, which is visible on the monthly charts. Technically, the price has fallen below the 50-day exponential moving average (EMA), a bearish signal indicating short-term problems.

Key Support and Resistance Levels

The next critical support lies around $76,160, near the 200 EMA. If this level does not hold, selling pressure may increase, especially due to ongoing whale activities. For the short term, $85,456 remains a crucial support level, while $96,471 serves as an immediate resistance.

Although these recent events seem bearish, Bitcoin remains a strong asset in the long run. Historically, the market often recovers after New Year, which could provide the momentum to rise above key support levels. However, the coming weeks will be crucial in determining whether these massive sales persist or decrease.

Conclusion

The movements of this Bitcoin whale underscore the importance of tracking large-scale transactions and their impact on the market. Traders and investors would do well to closely monitor the mentioned levels, as sustained price movements above or below these thresholds could determine the course for 2025.