Bitcoin prices continue to suffer weakness as every rally in recent weeks has been met with immediate selling pressure. As BTC prices approach $87,000, on-chain data shows that the total number of shark and whale wallet addresses is declining. This, coupled with outflows from Bitcoin ETFs, suggests that overall sentiment is turning bearish.
Cryptocurrency market analyst Tracer warned that Bitcoin could repeat a price pattern similar to the 2021 cycle. In a recent article, the analyst pointed to a structure marked by a double top, followed by a sharp sell-off.
The chart above also shows signs of a temporary bounce and another leg lower. Cryptocurrency analyst Tracer noted that many market participants may not be prepared for a new downward trend. According to the chart above, Bitcoin price may temporarily rebound to $100,000. However, if this pattern repeats, it could collapse later, all the way below the $60,000 level.
Additionally, blockchain analytics firm Santiment reported a change in Bitcoin wallet distribution. On-chain data shows that the number of wallets holding at least 1 Bitcoin has fallen by 2.2% since reaching a one-year peak on March 3.
However, Santiment noticed one good thing. During the same period, wallets holding more than 1 Bitcoin gained a total of approximately 136,670 Bitcoin.
After rallying towards $90,000 earlier this week, BTC is once again facing rejection. It shows a strong negative correlation with U.S. technology stocks and top-performing metals like gold and silver.
The U.S. Spot Bitcoin ETF has seen significant outflows over the past few trading days. Outflows continued this week after outflows of $497 million last week.
Data from Farside Investors shows that total outflows from all U.S. Bitcoin ETFs have surged to $188 million. BlackRock iShares Bitcoin Trust (IBIT) had the largest outflows at $157.3 million, with 1,792 Bitcoins leaving the fund. IBIT stock continues to hover near $50.
Read original story “Bitcoin Price Repeats 2021 Pattern, Whales, Sharks Wallets Fall” by Bhushan Akolkar on Coinspeaker.com
