Bitcoin price appeared to have entered a new rally after rising towards $75,000 during the week. However, the premium cryptocurrency has been steadily declining since hitting a one-month high of about $74,000. According to a prominent blockchain company, the fall in BTC price may not be over yet.
Whale offloads 66% of BTC purchases after $74,000 high
In a report on Friday, Santiment revealed that increased whale activity could cause the price of Bitcoin to fall further from current levels. According to the crypto analysis firm, BTC whales holding between 10 and 10,000 coins acquired large amounts of major cryptocurrencies between February 23 and March 3.
This large accumulation by this group of investors occurred as Bitcoin price fluctuated between $62,900 and $69,600. However, after the market leader rose above $70,000 towards $74,000, these whales began offloading their purchases, selling around 66% of their newly acquired coins.
At the same time, retail investors holding less than 0.01 Bitcoin have increased their exposure to the world’s largest cryptocurrency since it dipped below $70,000. “Retailers buying while whales are selling usually indicates the correction is not over yet,” Santiment said.
Source: Santiment
According to the blockchain company, there is currently a very high correlation between a group of 10,000 to 10,000 investors and Bitcoin price trends. “Right now, the reaction time between their move and price action is almost instantaneous, making this a top signal for short-term direction,” Santimento revealed.
In his report, Santiment also acknowledged the continuing geopolitical conflict between the United States, Israel, and Iran. Conflict and tension usually result in 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 market in the coming weeks as cryptocurrencies move based on the confidence of large capital holders and not just on retail panic. The market is also influenced by the expected duration and resolvability of disputes.
With the current global uncertainty and recent whale activity, it is difficult to be optimistic about how Bitcoin prices will fare in the coming days.
Bitcoin price overview
As of this writing, the price of BTC is around $68,057, reflecting an increase of almost 4% over the past 24 hours. According to data from CoinGecko, the value of this premium cryptocurrency has increased by nearly 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
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