Bitcoin’s Recent Correction May Continue Due to Whale Activity – Sentiment
Bitcoin price appears to have broken a new rally after a run towards $75,000 during the week. However, the cryptocurrency startup has been on a steady decline since reaching a one-month high of around $74,000. According to a prominent blockchain company, this decline may not end yet for the price of BTC.
Whales Load 66% of BTC Buys After $74K High
In a report on Friday, Santiment revealed that the price of Bitcoin may fall even below its current level due to increased whale activity. According to the crypto analytics company, BTC whales – holding between 10 and 10,000 coins – received significant amounts of the main cryptocurrency between February 23 and March 3.
This massive rally by this group of investors happened as the price of Bitcoin rose between $62,900 and $69,600. However, after the market leader rose above $70,000 and reached $74,000, the whales began to unload their purchases, selling about 66% of their newly acquired stocks.
At the same time, retail investors – entities holding less than 0.01 Bitcoin – have been increasing exposure to the world’s largest cryptocurrency since it retreated below $70,000. Santiment noted that “when a commodity buys during a whale sale, it usually indicates that the correction is not yet over.”
Source: Santiment
According to the blockchain company, the correlation between the group of 10-10k investors and the price action of Bitcoin is currently very high. “The reaction time between their movement and the price action is almost instantaneous, making this a very high value signal for a short-term trend,” Santiment revealed.
In its report, Santiment also acknowledged the international conflict between the United States, Israel and Iran. Often, conflict and tension lead to volatility – as seen at the beginning of the Russia-Ukraine conflict, when the broader financial market often reacted with fear.
Santiment concluded:
Crypto moves based on investor confidence, not just retail panic, so it will be interesting to watch the markets in the coming weeks. Markets are also affected by the expected duration and resolution of the conflict.
With the current uncertainty around the world and the recent whale activity, it is difficult to be optimistic about how the Bitcoin price will fare in the coming days.
Bitcoin Price At A Glance
As of this writing, the price of BTC stands at about $68,057, showing about 4% in the last 24 hours. According to data from CoinGecko, the value of the first cryptocurrency has increased by about 7% in the past seven days.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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