It seemed that the price of Bitcoin broke into a new rally after running to $ 75,000 during the week. However, the premier cryptocurrency is in steady decline after hitting a new one-month high around $74,000. According to a well-known blockchain company, this decline for the price of BTC is not over yet.
Sharks are up 66% buying BTC after $74K
In a report on Friday, Santiment revealed that the price of Bitcoin may even fall from its current level due to increased whale activity. According to data from a crypto analytics firm, BTC kits, which have between 10 and 10,000 coins, gained the most of the flagship cryptocurrency from February 23rd to March 3rd.
This heavy accumulation by this group of investors happened when the price of Bitcoin changed from 62,900 to 69,600 dollars. However, after the market leader broke above $70,000 and moved up to $74,000, these whales started buying and sold about 66% of their newly acquired coins.
At the same time, retail investors – entities with a value of 0.01 bitcoin – are increasing their exposure to the world’s largest cryptocurrency after falling below $70,000. Sentiment noted that “when retailers buy during whale sales, it usually indicates that the correction is not yet over.”
Source: Santiment
According to the blockchain company, the correlation between the group of 10-10k investors and the price action of Bitcoin is currently very high. “The reaction time between their movements and price action is now almost instantaneous, which is the highest signal for short-term direction,” Sentiment said.
In its report, Sentiment also acknowledged the ongoing geopolitical conflict between the United States, Israel and Iran. Usually, conflict and tensions lead to instability – as seen at the start of the Russia-Ukraine conflict, the broader financial market often reacts with fear.
Sentiment concluded:
Crypto movements are based on the confidence of large capital holders, not just retail panic, so it will be interesting to watch the markets in the coming weeks. Markets are also affected by the expected duration and resolution of the conflict.
With the current global uncertainty and recent bullish activity, it is hard to be optimistic about how the price of Bitcoin will fare in the coming days.
Bitcoin price at a glance
As of this writing, the price of BTC is around $68,057, reflecting about 4% over the last 24 hours. According to CoinGecko, the value of the Prime Minister’s cryptocurrency has increased by about 7% in the last 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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