Recent Bitcoin Correction Could Persist Due To Whale Activity — Santiment

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.”

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:

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.