Bitcoin price appears to have entered a new high after reaching $75,000 during the week. However, the leading cryptocurrency has been seeing a steady decline since hitting a new one-month high of $74,000. According to a prominent blockchain company, this decline may not be over yet for the BTC price.
Whales eliminated 66% of Bitcoin purchases after it rose to $74,000
In a report released on Friday, Santiment revealed that the price of Bitcoin may fall from its current level due to a rise in whale activity. According to the cryptocurrency analytics firm, Bitcoin whales – who own between 10 and 10,000 coins – acquired large amounts of the major cryptocurrency between February 23 and March 3.
This massive accumulation by this group of investors occurred as the price of Bitcoin oscillated between $62,900 and $69,600. However, after the market leader rose to over $70,000 and around $74,000, these whales began unloading their purchases, selling about 66% of their newly acquired coins.
At the same time, retail investors — entities holding less than 0.01 Bitcoin — have increased their exposure to the world’s largest cryptocurrency since it fell below $70,000. “When individuals buy while whales sell, it usually indicates that the correction is not over yet,” Santiment noted.
Source: Santiment
According to the blockchain company, the correlation between the 10-10K investor group and Bitcoin price movement is currently very high. “The reaction time between their movements and the price action is almost instantaneous at the moment, making this a higher value signal for a short-term trend,” Santiment revealed.
In her report, Santiment also acknowledged the ongoing geopolitical conflict between the United States, Israel, and Iran. Typically, conflicts and tensions lead to volatility – as we saw at the beginning of the conflict between Russia and Ukraine, where the broader financial market often reacted with fear.
Santiment concluded:
Cryptocurrency movements depend on the confidence of major venture capitalists, not just retail panic, so it will be interesting to monitor the markets over the coming weeks. Markets are also affected by the expected duration of the conflict and the possibility of its resolution.
With the current global uncertainty and recent whale activity, it is difficult to be optimistic about how the price of Bitcoin will move over the coming days.
Bitcoin price at a glance
As of this writing, Bitcoin’s price is around $68,057, reflecting a roughly 4% gain over the past 24 hours. According to data from CoinGecko, the value of the leading cryptocurrency has risen by approximately 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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