Bitcoin (BTC), the world’s largest cryptocurrency, is set for a massive price crash as whales and institutions have dumped significant amounts of BTC over the past 24 hours. On September 5, 2024, before the US stock market opened, a smart Bitcoin whale dumped a significant 680 BTC worth $38.77 million to Binance.
Whale sale of millions of BTC
This smart whale bought a significant 4,562 BTC worth $120.66 million at the end of 2022 at an average price of $26,449. However, he sold 3,938 BTC worth $181 million when BTC was trading around the $46,000 level. By combining all these sales, this smart whale has made a profit of around $96 million.
The recent massive dump occurred when BTC was trading around the $57,000 level and formed a strong bearish candle on the 4-hour timeframe. Since this dump, the BTC price has been continuously declining, heading towards the $54,000 level. Additionally, dormant BTC holders have also become active, which is a potential bearish sign.
Bitcoin Price Could Drop To $54,000 Level
According to expert technical analysis, BTC looks super bearish. It is also forming a pattern where each recent high price is lower than the previous one, and each low price is also lower. This suggests a downtrend. If BTC closes a four-hour candle below the $56,000 level, there is a high chance that it may drop towards the $54,000 level in the coming days.
On-Chain Metrics Signal Massive Sell-Off
In addition to this price action, BTC’s on-chain metrics data is also signaling a massive sell-off. CoinGlass’ BTC Long/Short Ratio chart is below one and currently hovering around the 0.953 level, indicating bearish sentiment among traders. Currently, 51.2% of top BTC traders have bearish short positions, while only 48% have long positions.
Moreover, BTC futures open interest has been continuously declining, indicating lower interest from top traders amid bearish sentiment. Since August 24, 2024, BTC open interest has declined from $34.72 billion to $29.33 billion.
Bitcoin Price Momentum
At the time of going to press, BTC is trading around the $55,900 level and has experienced a price drop of 3.7% in the past 24 hours. Meanwhile, the trading volume has increased by 12% in the same period, indicating higher participation from traders amid this sharp price drop.