Bitcoin's Bull Market Threshold Nears as Whales Sell into Rally
Bitcoin's price is close to reaching a bull market threshold according to CryptoQuant's data. The firm sets this level at $81,700, which is the average closing price of the past year. As of now, Bitcoin trades near $76,808, down 0.2% in 24 hours.
A recent rally saw retail investors buying into the market while 'Bitcoin whales' sold their coins to exchanges. This has left the price about $4,900 short of the bull market level. However, US institutions stayed away from the market during this time, as indicated by a negative Coinbase Premium.
CryptoQuant analyst GugaOnChain believes that a long squeeze is imminent. A long squeeze occurs when traders who borrowed to bet on gains are forced to sell their coins, pushing prices down further. This would be preceded by exhausted price momentum and noise in the Fear and Greed Index Score.