China’s crypto pivot could help Bitcoin shake off market FUD – Here’s how!

Right now, what Bitcoin needs is a catalyst to keep HODL sentiment intact.

As AMBCrypto recently reported, Bitcoin was trading near $86,200, putting whales at roughly 39% unrealized profit and sharks at nearly 28% based on their respective cost basis. With BTC now down to $83k, the risk of profit-taking and a new wave of selling pressure is clearly back.

In this situation, Bitcoin needs a fresh catalyst to give HOLDers a reason to stay put instead of locking profits.

This becomes even more important as Bitcoin’s latest Fear & Greed reading adds another layer to the setup. As the chart below shows, BTC closed the last session with the index at 73, reclaiming this level for the first time since the 1st of October.

However, the index has since eased to 71. While it is still in the Greed zone, the pullback could be an early sign of sentiment starting to cool.

Taken together, the growing profit stack and the volatile Fear & Greed Index suggest that Bitcoin’s bullish setup is starting to look shaky. With whales and sharks sitting on sizable unrealized gains, a further shift in sentiment could lead to profit-taking and hence selling pressure.

Why are Bitcoin whales adding to holdings?

Against that backdrop, Santiment reported continued accumulation among wallets holding between 10 and 10,000 BTC.