With the closure of all long positions, Machi Big Brother, one of the most powerful whales on the market right now, secured over $33.8 million in profits. Given that the charts for Ethereum and Bitcoin are both showing indications of an overheated market, this move is causing anxiety. The Bitcoin daily chart shows a double rejection pattern, with the price testing the $120,000 resistance level twice but failing to break through. 

Why are whales exiting?

The exceptionally low volume on breakout attempts indicates that there is not much buying pressure. Bitcoin is in a narrowing range and may see a sharp move if momentum falters as the 26-day and 50-day EMAs are catching up to price action. With no notable setbacks, Ethereum has been on a relentless run, rising leg after leg.

With minimal obvious resistance in the way, the price is moving toward $4,700; however, the RSI is displaying bearish divergence, suggesting that momentum may be slowing despite price gains. Compared to earlier legs, the volume on the most recent surge is lower, which can mean that buyers are running out of steam. There are a number of reasons why a whale like Machi would close all longs at this time.

Key bearish factors now

• Overbought technicals: With divergences suggesting possible corrections, both Bitcoin and Ethereum are extended well above important moving averages. 
• Phase of redistribution: During times of retail FOMO, prominent players frequently sell their positions, redistributing liquidity prior to a market reversal. 

Whales leaving at local highs have preceded sharp pullbacks in the past, but this could just be a profit-taking move ahead of short-term consolidation. 

Redistribution phases can quickly turn back to accumulation if market sentiment shifts. The market may retrace further if Bitcoin is unable to break $120,000 and ETH's divergence turns into reality. This could be a shakeout before another leg up, though, if new buying pressure appears. Whether retail demand can cover the void left by whale exits is currently the focus of attention.