The price of Bitcoin seemed to have broken into a fresh rally after making a run towards $75,000 during the week. However, the premier cryptocurrency has been on a steady decline since hitting a new one-month high around $74,000. According to a prominent blockchain firm, this decline may not be over yet for the price of BTC.
Whales Offload 66% Of BTC Purchase After $74K High
In a Friday report, Santiment revealed that the price of Bitcoin could even fall lower from its current level due to rising whale activity. According to the crypto analytics firm, BTC whales — holding between 10 and 10,000 coins — acquired significant amounts of the flagship cryptocurrency between February 23 and March 3.
This heavy accumulation by this investor cohort occurred as the Bitcoin price oscillated between $62,900 and $69,600. However, after the market leader climbed above $70,000 and toward $74,000, these whales started offloading their purchases, selling off about 66% of their freshly-acquired coins.
At the same time, retail investors — entities holding below 0.01 Bitcoin — have been increasing their exposure to the world’s largest cryptocurrency since falling back below $70,000. Santiment noted that “when retail buys while whales sell, it typically signals that the correction is not yet over.”
Source: Santiment
According to the blockchain firm, the correlation between the 10-10k investor cohort and the Bitcoin price action is currently extremely high. “The reaction time between their moves and price action is almost instantaneous right now, making this the highest-value signal for short-term direction,” Santiment revealed.
In its report, Santiment also acknowledged the ongoing geopolitical conflict between the United States, Israel, and Iran. Typically, conflict and tensions lead to volatility — as seen at the start of the Russia-Ukraine conflict, with the broader financial market often reacting with fear.
Santiment concluded:
Crypto moves based on the confidence of large capital holders, not just retail panic, so it will be interesting to watch the markets over the coming weeks. The markets are also affected by the expected duration and resolvability of the conflict.
With the current global uncertainty and recent whale activity, it is difficult to be optimistic about how the Bitcoin price will move over the coming days.
Bitcoin Price At A Glance
As of this writing, the price of BTC stands at around $68,057, reflecting an almost 4% in the past 24 hours. According to data from CoinGecko, the value of the premier cryptocurrency has increased by nearly 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
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold 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 our content for our readers.