Bitcoin price appears to have entered a new rebound after racing towards $75,000 during the week. However, the top cryptocurrency has been on a steady decline since hitting a one-month high of around $74,000. According to a prominent blockchain company, this downward trend in BTC price may not be over yet.
Whales Offload 66% of BTC Purchases After $74K High.
In a report on Friday, Santiment said that increased whale activity could push Bitcoin prices below current levels. BTC whales, which hold between 10 and 10,000 coins, acquired significant amounts of the flagship cryptocurrency between February 23 and March 3, according to the cryptocurrency analytics firm.
This massive accumulation by this group of investors occurred as the Bitcoin price oscillated between $62,900 and $69,600. However, after the market leader rose above $70,000 to $74,000, these whales began unloading their purchased coins, selling approximately 66% of their newly acquired coins.
At the same time, retail investors holding less than 0.01 Bitcoin have been increasing their exposure to the world’s largest cryptocurrency after it fell below $70,000. “When retailers buy when whales are selling, it’s usually a sign that the correction isn’t over yet,” Santiment noted.
Source: Santiment
According to the blockchain company, the correlation between 10,000 to 10,000 investor groups and Bitcoin price action is currently very high. “The reaction time between their movement and the price movement is almost instantaneous, making them the highest value signals in the short-term direction,” Santiment said.
In his report, Santiment also acknowledged the ongoing geopolitical conflict between the United States, Israel, and Iran. Conflict and tension typically lead to volatility. Broader financial markets often react with fear, as we saw at the start of the Russia-Ukraine conflict.
Santiment concluded:
It will be interesting to watch the markets over the coming weeks as cryptocurrencies move based on the confidence of large capital holders as well as retail panic. The market is also influenced by the expected duration of the dispute and the likelihood of resolution.
Due to the current global uncertainty and recent whale activity, it is difficult to be optimistic about how the Bitcoin price will move in the future.
Bitcoin price at a glance
As of this writing, the BTC price is around $68,057, reflecting a rise of nearly 4% in the last 24 hours. According to data from CoinGecko, the value of the top cryptocurrency has increased by almost 7% over the past seven days.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
editing process for focuses on providing thoroughly researched, accurate, and unbiased content. We adhere to strict sourcing standards and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of the content for readers.
