BTC’s recent bullish momentum hinges on expectations of approval of a spot Bitcoin ETF (exchange-traded fund). But now, it faces a potential setback as Bitcoin whales enter a redistribution regime.
On-chain data suggests that Bitcoin’s price is likely to recover to $37,000.
Why Bitcoin Could Drop to $37,000
Ali Martinez, global news director at BeInCrypto, noted that the number of entities holding at least 1,000 BTC fell by 1.10% over the past three days. This drop may not signal a sell-off. However, it illustrates the redistribution system among large Bitcoin whales.
Rising selling pressure could soon affect Bitcoin’s price. Martinez believes that such an event could cause the recent bull rally to pause if the price loses support at $43,200. In fact, he said that if this happens, the price of Bitcoin could fall below $40,000.
Likewise, analysts at Santiment also advise caution, noting that the current surge in bullish market activity is leading to widespread fear of missing out (FOMO) among investors. They believe this trend deserves caution. Still, Martinez added that as long as Bitcoin continues to hold above the $43,200 support, “the odds appear to be in favor of the bulls.”
