- Bitcoin whales reduce activity, reflecting caution with the U.S. election and market volatility.
- Whale activity shifts from August accumulation to October profit-taking as Bitcoin nears peak.
- Key Bitcoin support level at $68K as analysts warn of volatility amid FED and election impact.
As the U.S. readies for the high-stakes election announcement this week, crypto traders expect heightened market activity, especially in Bitcoin trading. Data from Santiment shows that large Bitcoin holders are scaling back on transactions.
Historically, increased whale transactions have signaled potential price reversals in the crypto market. However, Santiment data indicates that the current cautious whale behavior doesn’t necessarily predict a downturn but rather reflects a careful approach in response to anticipated market shifts.
Whale Activity and Market Sentiment
In August, a shift in whale activity was observed when Bitcoin was around $50,000. According to Santiment, this rise in transaction volumes coincided with an increase in Bitcoin’s price over the following months.
By late October, however, the trend reversed. As Bitcoin approached $72,000, whales moved from accumulation to profit-taking, mirroring a broader strategy among seasoned investors to sell at higher prices.
Read also: Bitcoin’s Bull Run May Begin Post-2024 U.S. Election Results
Technical Analysis: Key Support and Resistance Levels
Adding to the cautious outlook, crypto analyst Michaël van de Poppe identified this week as critical, with both the U.S. election and Federal Reserve (FED) decisions introducing additional uncertainty.
Van de Poppe pointed to recent bearish data, including the weakest U.S. job report in three years, suggesting possible increased volatility in the crypto market.
His analysis highlights Bitcoin’s recent high at $73,650 and a pullback near $68,000, a current key support level.
Further support lies around $64,130, identified as essential for maintaining Bitcoin’s upward trend. A drop below this could test a liquidity zone near $60,748, where buyers may act to prevent further declines.
The RSI suggests neutral momentum, showing no extreme buying or selling pressures, aligning with the overall cautious sentiment as traders monitor these levels.
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