Bitcoin Bull Market Shows Fatigue as 120,000 Whale Coins Sold, Analysts Warn

Prominent crypto analyst Scott Melker, known as "The Wolf Of All Streets," recently questioned the prevailing sentiment of a perpetual bull market in Bitcoin, suggesting the current cycle might be nearing its conclusion. In a discussion with on-chain analyst Willy Woo, Melker highlighted a growing concern that many assume an unending upward trajectory for the cryptocurrency. The conversation delved into critical market indicators, including liquidity and significant whale movements, painting a cautious outlook for Bitcoin's immediate future.

Willy Woo, a respected voice in on-chain analytics, pointed to a notable decline in market liquidity, stating, "late cycle liquidity is waning." He observed that while Bitcoin's price has continued its ascent, the underlying capital inflows powering this momentum have begun to diminish over the past six months. This divergence, where price momentum continues despite decreasing liquidity, signals a potential "countdown timer" for the current bull run, according to Woo's analysis.

A key concern raised was the substantial selling activity by large Bitcoin holders. Woo revealed that an estimated 115,000 to 120,000 Bitcoin from whale wallets have been sold in the past one to two months. This significant offloading of coins, coupled with a lack of investor validation for the $120,000 price level, suggests a bearish divergence. Woo further predicted that in a potential downturn driven by macro factors, Bitcoin's price could dip "below 40."

The discussion also touched upon broader macroeconomic uncertainties and their impact on the crypto market. Recent reports from Coindesk and Bloomberg corroborate a cautious market sentiment, noting that Bitcoin's post-halving rally has largely fizzled amidst macroeconomic headwinds and a lack of fresh catalysts. Analysts are divided on whether the current consolidation is a prelude to another bull run or an impending correction.

Despite the short-term concerns, the analysts also discussed Bitcoin's long-term potential. Woo described Bitcoin as the "canary in the coal mine" for global liquidity, suggesting its sensitivity to macro-economic shifts. While acknowledging the irony of stablecoins like Tether supporting the fiat system, he believes Bitcoin will eventually grow large enough to act as a stable "digital gold," though this transition may take another decade due to its current market size relative to traditional assets.