Bitcoin Whale $230M Activity Raises Caution as ETFs See Outflows

This article was first published on The Bit Journal. Bitcoin markets showed signs of unease on December 25 as subdued price action collided with notable Bitcoin whale movements, adding to an already cautious trading environment.

Onchain Lens, a blockchain tracking site, also indicated that on the same day, a long-dormant Bitcoin whale alongside the asset management giant BlackRock moved large sums of BTC into centralized exchanges. 

BlackRock has placed 2,292 BTC, which is worth around 199.8 million, into Coinbase, and a different wallet of Bitcoin whales who had not traded in eight years had transferred 400 BTC, which had a value of about 34.9 million, to OKX.

Bitcoin Whale Moves Trigger Market Caution

The actions of a Bitcoin whale tend to attract more attention among traders because a high influx of exchanges may give a clue about the potential sell-side pressure. Although no direct evidence that these assets were sold on the spot was given, the magnitude and the timing of the transfers was sufficient to put a burden on sentiment. The market participants were still on the alert and were keen on whether another whale would continue to make a move.

To further the defensive tone, U.S. spot Bitcoin exchange-traded funds still reported capital outflows. According to the data released by SoSoValue, spot Bitcoin ETFs had registered net withdrawals over five consecutive trading days. The continued withdrawals indicated that institutional demand was still weak even as Bitcoin was still trading above its significant technical support levels.

ETF Outflows Combine With Whale Activity

Combined with the consistent ETF flows and exchange deposits associated with Bitcoin whales, a risk-averse mood in the market was supported. At the time of reporting, Bitcoin was trading around at a price of $89,333 which is down by approximately 0.35 percent on the day.

The same precaution was indicated in the derivatives market data. Open Interest fell by close to one percent to $57.42 billion, as traders were reducing leveraged exposure instead of trading aggressively. This fall in leverage indicated that there was doubt about the short-term direction of Bitcoin as whales of Bitcoin continue to be tracked.

Bullish Leverage Builds Despite Bitcoin Whale Activity

Intraday positioning reflected areas of bullish belief in spite of extensive caution. The Liquidation Map of CoinGlass showed that the largest leverage clusters were found at $85,966 down and $88,636 up. 

Long-leveraged positions have accounted about 646 million dollars to the traders compared to 422 million dollars in short positions at these levels. The imbalance indicates that there are already numerous traders who think that Bitcoin will be above the $86,000 area, despite the Bitcoin whale activity being under review.

Technically, Bitcoin is still trading within a lengthy consolidation zone. The analysis of weekly charts indicates that the asset has been in the range of $86,000 to $93,500 since the middle of November. In the past, these periods of consolidation usually come before radical directional changes, particularly when it is coupled with significant Bitcoin whale transfers.

Bitcoin Faces Breakdown Risk Near Range Low

With a lower limit of this range at hand, there is a growing concern that a collapse in the Bitcoin market can lead to further correction. A resolute close below the support of $86,000 might open the gates to additional downfall, especially in the case adverse sentiment associated with Bitcoin whale behavior increases.

Nevertheless, a bearish outlook would go to waste, should Bitcoin recover and rise above the topmost resistance of $93,500. Until there is a noticeable breakout or breakdown, traders will be on the alert carefully monitoring Bitcoin whale movements, ETF flows, and key technical levels to give cues to the next significant move of Bitcoin.

Conclusion

Overall, Bitcoin is at a decisive turning point, and whale activity, declining ETF flows, and constrained moving price action influence short-term expectations. Until a decisive break above resistance or below support, traders will be cautious, following very closely the institution behavior and relevant technical levels.

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Summary

• Market mood became risk-averse with BlackRock and dormant whales transferring large BTC volumes to exchanges.
• Spot Bitcoin ETFs experienced further outflows indicating low institutional demand.
• Open interest decreased, indicating less leverage although there were a few bullish positions.
• BTC was range-bound, and a decline below $86,000 or above $93,500 would probably establish direction.

Glossary Of Key Terms

• Onchain Lens: Platform tracking large blockchain transactions.
• Spot Bitcoin ETF: Fund tracking Bitcoin’s spot price.
• ETF Outflows: Money leaving exchange-traded funds.
• Open Interest: Total active derivative contracts.
• Leverage: Borrowed funds used for trading.
• Liquidation Map: Levels where positions may be closed.
• Consolidation Zone: Sideways price movement range.
• Support Level: Price area limiting declines.
• Resistance Level: Price area limiting gains.

Frequently Asked Questions about Bitcoin Whale

1. Why was Bitcoin market cautious on December 25?

Muted price action and Bitcoin whale activity, including large BTC transfers, unsettled traders.

2. How much Bitcoin was transferred by whales?

BlackRock transferred 2,292 BTC ($199.8M) to Coinbase, another inactive wallet transferred 400 BTC ($34.92M) to OKX.

3. How did Bitcoin ETFs affect sentiment?

The five consecutive days of outflows of Spot Bitcoin ETFs are indicative of low institutional demand.

4. What are key Bitcoin price levels to watch?

BTC trades in $86,000–$93,500, a drop below $86,000 may trigger declines, a rise above $93,500 counters bearish views.

Reference

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