As it stands, the major cryptocurrency is maintaining its broader bearish structure, with its price struggling to overcome the $68,000 resistance over the past few days. However, an fascinating on-chain development suggests that Bitcoin’s price will likely see some relief soon, but only after a certain condition is met.

Realized profits show a warning pattern preceding specific moves

In a recent Quicktake post on CryptoQuant, network analyst MorenoDV revealed that Bitcoin whales have made profits of more than $208 million. As the whales’ realized profit index shows, this event – during which members of this cohort earned more than $200 million – is the seventh such event in the last two years.

It’s worth noting that these jumps in earnings didn’t happen without price impact; instead, they were often accompanied by market turmoil, which also largely preceded the formation of local lows. This suggests that large-scale selling from experienced holders tends to create transient liquidity imbalances.

Once the supply created by these whales is absorbed, this often leads to price stabilization. Interestingly, this stability has often preceded bullish price reversals in Bitcoin. However, there have also been several instances where profit-taking in this cohort of investors has coincided with the creation of local superiority.

Nevertheless, MorenoDV explained that this profit-seeking behavior among Bitcoin whales usually signals conviction to the behavioral consistency of this class of investors. Therefore, these enormous investors rarely sell impulsively, but when they do, “signals a belief of impending price exhaustion or a strategic repositioning.”

Therefore, if history is anything to go by, the analyst explained that the Bitcoin market is highly likely to experience turbulence in the near future. However, this also implies that Bitcoin’s price is closer to the local exhaustion point than to the beginning of a bearish market cycle.

If institutional flows and even mid-sized holders begin to accumulate at current levels, the market may interpret this as robust rotation, which in turn may translate into bullish momentum. On the other hand, if demand remains insufficient or if more market participants sell their shares, downward pressure could intensify, pushing prices further south.

Bitcoin price at a glance

At the time of writing, BTC is trading around $67,960, which does not reflect any significant movement in the last 24 hours.

Featured image by Dall.E, chart from TradingView