Bitcoin has surged in price over the past few days and is currently trading at $67,600. However, the price may see a short-term correction as it faces significant selling pressure from whales.
Bitcoin has recently seen a strong rally, pushing it to its highest level in nearly three months. The rally has brought Bitcoin closer to its all-time high (ATH), reigniting optimism among traders and investors.
However, while the rally continues, the emergence of large whale transactions and significant profits could be a sign of a potential price drop, shaking up Bitcoinâs growth prospects.
Bitcoin in the spotlight
The latest data from Santiment shows a significant increase in whale transactions, with Bitcoin transactions worth over $100,000 reaching a 10-week high. Increased whale activity is often a sign of a change in market behavior, as these large holders have the ability to influence prices by accumulating or dumping their assets. Currently, the high whale trading volume is raising concerns about a possible price correction.
Bitcoin Whale Transaction And Media Discussion
At the same time, Bitcoinâs dominance in social media discussions has increased significantly, accounting for 25% of all crypto-related discussions. This trend suggests that attention is gradually shifting away from altcoins, as more traders focus on Bitcoinâs performance. History shows that when Bitcoin dominates such a large portion of the marketâs attention, it often signals price volatility, increasing the likelihood of a price drop.
âBoth of these signs suggest that the rally may be pausing as large investors take profits and FOMO (fear of missing out) spreads in the community. However, with medium- and long-term indicators still showing positive trends, any price correction is likely to be short-term,â Santiment noted.
Bitcoinâs macro dynamics paint a similarly cautious picture. Currently, 95% of Bitcoinâs circulating supply is in profit, a statistic that has accompanied past market tops.
Bitcoin Supply In Profit
When a majority of holders are in profit, selling pressure typically increases, leading to a price correction. This scenario has played out in previous market cycles and appears to be repeating itself, suggesting that Bitcoin may be approaching a short-term top.
With such a large proportion of the supply in profit, the current market environment is reminiscent of conditions that have led to previous corrections. The high profitability encourages many investors to take profits, thereby putting downward pressure on Bitcoinâs price. If these conditions persist, a market top could form, leading to a price decline.
#btcupdates2024 #BTC1D #USRetailSalesBoost #SCRSpotTradingOnBinance #BinanceLabsInvestsLombard
