Bitcoin Dip May Not Be Over As Retail Ramps Up Buying: Santiment

Retail investors have been snapping up Bitcoin after it fell below $70,000, but whale activity suggests the price could continue to fall if previous patterns are repeated, according to cryptocurrency sentiment platform Santiment.

“The moment Bitcoin reached $74,000, these key stakeholders started taking profits,” Santiment said in a report on Friday.

Santiment explained that whales — those with between 10 and 10,000 bitcoins (BTC) — “accumulated significantly” between February 23 and March 3, when BTC was trading between $62,900 and $69,600.

Cryptocurrencies, Bitcoin price, adoption — *Whales (green line) were selling, while retail investors (red line) were buying more Bitcoin. source:* *Santiment*

Since Wednesday, when bitcoin surpassed $70,000 and touched $74,000, the group has unloaded about 66% of their recent purchases, Santiment said. Meanwhile, retail investors – those holding less than 0.01 BTC – increased their positions.

Santiment says the correction may not be over yet

“When individuals buy while whales sell, it usually indicates that the correction is not over yet,” Santiment said. Bitcoin is trading at $67,984 at press time, according to CoinMarketCap.

Bitcoin’s price decline sent the cryptocurrency’s Fear and Greed Index down by 6 points, pushing it into “extreme fear” territory with 12 points on Saturday.

MN Trading Capital founder Michael van de Poppe shared a similar forecast, saying there is potential for a further decline. “If Bitcoin does not find support in this $67-68K area, we will likely retest the liquidity lows before bouncing back to the upside,” Van de Poppe said in an X post on Friday.

Spot Bitcoin ETFs Record Biggest Outflow Day in Three Weeks

This decline coincided with US-based Bitcoin ETFs recording their largest outflow day since February 12, with a total of $348.9 million in net outflows across 11 ETF products, according to Farside data.

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Bitcoin’s price fell to a low of $60,000 on February 6 during its downtrend from October’s all-time high of $126,000 before showing a modest recovery. Economist Timothy Peterson indicates that this level may be the minimum at the present time.

“This valuation level has always represented a bottom for Bitcoin. There is about a 99.5% chance it will stay above $60,000,” Peterson said in the X post, referring to a Bitcoin price to Metcalfe value chart.

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