Bitcoin whale holdings hit six-year low

Bitcoin (CRYPTO:BTC) whale holdings have plummeted to their lowest level in six years, sparking concerns about the cryptocurrency's price trajectory amid ongoing struggles.

Data from the on-chain analytics platform IntoTheBlock reveals that the total amount of Bitcoin held by large investors has dropped to levels not seen since 2019.

This decline coincides with Bitcoin's difficulty in maintaining momentum above the $90,000 mark, as trading has predominantly occurred between $85,000 and $90,000 in recent days.

The selling pressure on Bitcoin has intensified over the past two weeks, resulting in a significant reduction in whale net flow, which has seen more outflows than inflows.

Specifically, whale net flow has decreased by 85.78% over the past week and 70.22% over the last month, indicating a lack of confidence among major investors.

At present, Bitcoin is trading at approximately $86,115, reflecting a slight decline of 0.5% in the last 24 hours and a minor drop of 0.2% over the past week.

Despite attempts by bulls to push Bitcoin above the critical $90,000 resistance level, sellers have consistently regained control, dragging the price back down.

The recent establishment of a U.S. crypto reserve has failed to generate bullish momentum, leaving market participants feeling discouraged.

If whales continue to offload their holdings rather than accumulate, this could lead to further downward pressure on prices, with potential support levels at $82,000 and $78,000 coming into play.

Adding to these concerns is a technical development noted by analyst Ali Martinez; a "death cross" has formed as the 50-day moving average crossed below the 100-day moving average.

This crossover historically signals increased downside risks if Bitcoin fails to attract fresh buying interest.

As market dynamics shift with declining whale holdings and increased selling pressure, investors are advised to monitor price movements closely for signs of stabilisation or further declines.

The current situation raises questions about Bitcoin's ability to recover and whether it can maintain its position above critical support levels in the coming days.

At the time of reporting, the Bitcoin (BTC) price was $82,288.13.