A closely followed trader says that deep-pocketed crypto holders have unloaded tens of thousands of Bitcoin (BTC) in just seven days.
Trader and on-chain sleuth Ali Martinez says that Bitcoin whales have been selling off their Bitcoin stacks as BTC hit a new 2023 high of about $38,000.
“Bitcoin whales have been booking profits, selling or redistributing around 60,000 BTC over the past week, worth roughly $2.22 billion.”
According to Martinez, Bitcoin whales are not the only investor cohort that has been dumping their BTC troves. The analyst previously noted that Bitcoin miners have unloaded 5,000 BTC worth about $175 million over the last few weeks.
The trader also issued a warning that Bitcoin could drop all the way down to $33,000 as the Tom DeMark (TD) Sequential indicator flashed a bearish signal on the weekly chart.
The TD Sequential indicator traces a series of price points to signal possible trend reversals.
Said Martinez,
“Although I’m not touching my spot BTC position until some time in 2025, I’m inclined to enter a short in the futures market.
Want to know why?
Well, the TD Sequential presents a sell signal on the weekly chart as BTC approaches an important area of resistance between $38,500 and $42,000.
I believe this resistance wall could trigger a correction toward $33,000, where I plan to buy the dip before the uptrend resumes. Invalidation would be a weekly candlestick close above $42,500.”
At time of writing, Bitcoin is worth $36,415.
Looking at the decentralized oracle network Chainlink (LINK), Martinez says that the altcoin is likely poised for a significant pullback with the TD Sequential indicator showing a bearish signal on multiple time frames.
“It looks like Chainlink is bound for a correction!
The TD Sequential presented a sell signal on LINK daily, three-day, and weekly charts, anticipating a retracement toward $12.50. Failing to hold above this critical support area could extend the losses to $10.50.”
At time of writing, LINK is trading for $14.54.
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