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F&T: Major red flag rises

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Just yesterday, we remarked how large speculators were seemingly devoted to holding their Bitcoins (BTCUSD) despite steep price tags. However, new data reveals that large speculators took a major step toward liquidating their positions overnight, reflected in a significant drop in the number of Bitcoin addresses with balances exceeding 1,000 BTC. This is a highly concerning development for bulls, considering Bitcoin’s recent rejections at $70,000 and the overbought stock market, which stays highly correlated with the cryptocurrency market. 

 

Technical conditions

Daily time frame = Slightly bullish (turning neutral)

Weekly time frame = Bullish (losing momentum)

Monthly time frame = Bullish

 

Bitcoin addresses

The number of Bitcoin addresses with balances exceeding 1,000 BTC fell from 2,135 to 2,072, marking the biggest single-day move down since late February 2024. A significant drop can also be observed among the number of Bitcoin addresses with balances exceeding 100 BTC.

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