Bitcoin Whales' Activity Suggests Distribution Over Breakout

Bitcoin's price has been stable near $78,000 after experiencing heavy selling pressure in recent weeks. However, on-chain data from CryptoQuant suggests that whales may still be preparing for more distribution rather than a major breakout.

CryptoQuant analyst Woominkyu has analyzed the behavior of whale wallets over the past 20 days and found that they have been following a three-stage trading pattern. The first phase began when Bitcoin traded near $78,000 between May 1 and May 4, during which large holders quietly removed BTC from exchanges while retail traders remained cautious.

However, once Bitcoin pushed higher, whale behavior quickly shifted as they began moving coins back onto exchanges, a classic signal that smart money may be taking profits. The selling pressure continued through the second half of May, with exchange reserves climbing to nearly 2.696 million BTC, the highest level recorded this month.

Woominkyu believes that the current whale activity suggests Bitcoin remains stuck between accumulation and distribution rather than entering a strong breakout phase. This is because rising exchange balances usually increase short-term selling pressure, making it more difficult for Bitcoin to break out above key resistance levels.