Bitcoin Inches Closer to Bull Market Threshold as Whale Sales Loom

Bitcoin's price is close to $5,000 away from reaching CryptoQuant's bull market threshold of $81,700. Despite a recent two-week rally, analysts believe that the cryptocurrency still needs to breach this level to confirm a new bull market. As of Sunday, Bitcoin traded near $76,808, down 0.2% in 24 hours.

CryptoQuant's Exchange Whale Ratio indicates that large wallets are selling into exchanges, while retail investors are buying. The ratio stands at 0.93, a level that the firm flags as a sign of potential weakness. This is in contrast to retail investors, who have been buying heavily and driving up prices.

However, institutions did not participate in this rally. A negative Coinbase Premium suggests that American funds were not behind the move. With price momentum already exhausted and the Fear and Greed Index locked in a zone of 'absolute noise', CryptoQuant analyst GugaOnChain predicts that a long squeeze is imminent. This would force traders who borrowed to bet on gains to sell, pushing prices down further.

Meanwhile, long-term holders have released as much as 539,000 BTC within the $77,100 to $80,200 resistance band this year. This could be a sign of profit-taking from these large wallets. The upper band marks where trader profit-taking has historically emerged.