Recent data from CryptoQuant reveals significant profit-taking activity by Bitcoin whales, with new addresses booking $3.21 billion in profits as BTC consolidates around the $110,000 mark. This profit-taking behavior comes after Bitcoin’s impressive surge to an all-time high of $112,000, suggesting a potential short-term correction phase.
As highlighted in our recent analysis Bitcoin Holds $109K as Long-Term Holders Buy $185M Liquidation Dip, while newer investors are taking profits, long-term holders remain steadfast in their positions, indicating strong underlying market confidence.
Whale Activity Analysis
Key findings from the CryptoQuant data include:
- New whale addresses booked $3.21B in profits vs. $679M by older wallets
- 82.5% of recent profit-taking comes from newer wallets
- Average cost basis for profit-taking stands at $91,900
Institutional Support Remains Strong
Despite the profit-taking activity, institutional interest continues to grow:
- Michael Saylor’s Strategy acquired $427M worth of BTC at $106,200 average
- JP Morgan now allows spot Bitcoin ETF purchases
- Potential conversion of portion of JP Morgan’s $6T deposits into BTC
Technical Outlook
Several bullish indicators suggest potential upside:
- Bitcoin options Delta skew at -6%, indicating bullish sentiment
- Strong support level established at $110,000
- Long-term holders showing no signs of distribution
FAQ
Why are new Bitcoin whales taking profits now?
The recent profit-taking appears to be driven by the nearly 50% price increase from $75,000 to $112,000 in just 45 days, presenting an attractive exit point for shorter-term investors.
Will Bitcoin break above $112,000 soon?
Technical indicators and institutional support suggest a potential breakthrough, but market participants should monitor whale activity and overall market sentiment for confirmation.
What’s the significance of long-term holders not selling?
Long-term holder behavior often indicates market conviction and can signal sustained bullish momentum, particularly when coupled with strong institutional buying.