5 key reasons why Bitcoin will likely see new all-time highs soon

The price of Bitcoin (BTC) has been under severe selling pressure by whales for the past two months as on-chain data reveals.

However, five key indicators are suggesting that major sellers are about to turn into hodlers or even accumulators of Bitcoin again while institutional demand remains high. This is an explosive setup that may send Bitcoin to new all-time highs in the near term.

Whales stopped selling

The number of whales, which are considered Bitcoin addresses with a balance equal to and more than 1,000 Bitcoin, declined by more than 10% since Feb. 8, is suggesting a large sell-off of Bitcoin.

While the price of Bitcoin managed to make two all-time highs during the two-months dumping period, the overall price rise has significantly slowed down with price finding strong resistance at around $60K. Since March 31, however, large holders of Bitcoin have stopped selling.

Bitcoin: Number of Addresses with Balance > 1k. Source: glassnode

Typical for sell-offs before a quarter-end is portfolio rebalancing by institutions. As Bitcoin has seen a 104% price rise since the beginning of this year, this is to be expected.

Grayscale, the largest digital asset manager, announced yesterday that it has just undergone rebalancing for its digital large-cap fund at the expense of selling Bitcoin.

If rebalancing is the major driver and considering that the number of addresses holding equal or more than 1K BTC is back at levels last seen at year-end from which the significant price rise started, whales could be finished selling for now.

Long-term hodlers selling Bitcoin are slowing down

With Bitcoin breaking the 2019 high last October did not only begin one of the fastest but also one of the most prolonged increases in Coin Days Destroyed (CDD).

This on-chain metric expresses the weight at which long-term hodlers are selling. It is calculated by taking the number of coins in a transaction and multiplying it by the number of days it has been since those coins were last spent. This means…

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