As the cryptocurrency market shows signs of overheating, centered around Bitcoin (BTC) and Ethereum (ETH), it has been revealed that the major market whale 'Machi Big Brother' has liquidated all of their long positions, generating approximately $33.8 million (about 47 billion won) in profits. This large-scale exit has raised strong concerns among investors, with experts suggesting that the market may be entering a downturn.
Currently, Bitcoin has failed twice at the $120,000 resistance level, and the lack of increasing trading volume is also breeding skepticism about continued growth. Particularly, as the 26-day and 50-day moving averages approach the price, the possibility of breaking the upward momentum is increasing. Ethereum is also maintaining a strong upward trend with a short-term target of $4,700, but the weakness divergence in the Relative Strength Index (RSI) suggests a slowdown in buying momentum.
Machi Big Brother's decision to fully liquidate long positions is seen as more than just a profit-taking signal. Historically, whale position adjustments often mark the beginning of market corrections. Notably, the recent uptrend has been characterized by consistently decreasing trading volume. This phenomenon suggests buying power exhaustion, and some investors diagnose this as a re-distribution phase. Typically, at this point, retail investors chase purchases after missing the selling timing, creating a pattern where large funds exit in this window.
Bitcoin is currently hesitating at major turning points, unable to break through $120,000. If it fails to surpass this level and trading volume continues to decrease, there is ample room for short-term downward pressure to expand. Ethereum, while maintaining a strong trend, shows technical indicators like RSI and trading volume that suggest the current movement might be excessively overheated.
Of course, there is still a possibility of transitioning to an accumulation phase after a short-term correction. If new buying momentum is confirmed, the current volatility could be a correction preparing for the next wave of growth. However, the most critical variable at this point is whether there is sufficient individual investor demand to absorb whale volumes.
Ultimately, Machi's strategic liquidation may be a preemptive response to market peak rather than simple profit-taking. The market direction can only be estimated by comprehensively considering trading volume, technical resistance level breakthrough, and major indicator trends in the coming days.
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