Bitcoin dips after record rally as whales and miners sell off, ETF outflows rise, and indicators suggest temporary overbought conditions - IcoHolder.

Bitcoin’s sharp rally to a record $93,800 was followed by a pullback, dipping from $92,000 to under $87,000, sparking discussions among investors about the cryptocurrency’s next moves. Recent data suggests that Bitcoin may have hit a short-term bottom, with several factors contributing to the recent dip.

Whale and Miner Sell-Offs Impact Bitcoin’s Price

One of the primary drivers behind Bitcoin's price drop appears to be large-scale sell-offs by “whales” and miners. Data from Lookonchain shows whales moved significant amounts of Bitcoin to exchanges, likely cashing in on profits following Bitcoin’s rally. Over the last three days, one whale alone transferred more than 4,000 BTC (worth approximately $361 million) to Binance.

Miners, too, have begun selling Bitcoin, according to recent CryptoQuant data. Notably, a Satoshi-era miner moved 2,000 Bitcoin mined in 2010 to exchanges. This activity from both whales and miners may have contributed to a temporary oversupply, impacting Bitcoin’s price.

ETF Outflows Signal Possible Local Top

Bitcoin ETFs experienced substantial inflows following the recent U.S. presidential election, with nearly $5 billion invested over six days. However, this trend reversed on Thursday as ETF funds saw $400 million in outflows—the third largest outflow day since ETFs launched in January. Historically, significant ETF outflows have coincided with local price bottoms, which could mean Bitcoin may be stabilizing after this pullback.

Overbought Conditions and Market Sentiment

In addition to sell-offs, indicators like the Relative Strength Index (RSI), Market Value to Realized Value (MVRV), and elevated fear of missing out (FOMO) levels all suggested Bitcoin might be temporarily overbought. Despite remaining 17% higher for the week, Bitcoin has yet to reach its anticipated $100,000 target, but investors remain hopeful that a new high may still be within reach.

Bitcoin’s recent pullback highlights the ongoing volatility in the cryptocurrency market, with data suggesting a potential bottom has been reached. However, with various factors at play, the path forward remains uncertain for BTC.