Bitcoin might not have completely finished its retracement phase until now since some recent on, chain data show that big holders take advantage of retail investors buying activities to sell their holdings; a pattern which historically has led to more downward price movement.
Santiment data reveals that wallets holding between 10 and 10, 000 BTC carried out large purchases during the late February selloff when Bitcoin was trading within the price range from $62, 900 to $69, 600. On the other hand, these wallets that had just bought ended up realizing their gains and selling off about 66% of their positions following the price rebound to around $74, 000.
On the other hand, smaller wallets with less than 0.01
$BTC have been gradually increasing their holdings as Bitcoin went down again to below $70, 000. Analysts note that this scenario of whales selling and retail buying is usually an indication that a market correction may not be over yet.
Data from Glassnode adds to the pressure, showing that roughly 43% of Bitcoin's total supply is currently at a loss. This creates resistance during rebounds as many holders sell when prices return close to their break-even levels.
Market sentiment is still weak, as reflected by the recent plunge of the Crypto Fear and Greed Index to 12, putting the market in a deep state of extreme fear.
Having fluctuated between $60, 000 and $74, 000 during the last month,
$BTC is currently trading around $68 000 signifying a market that has experienced considerable price swings but has made very little net progress. Experts believe the next significant price movement could be either a breakout above $74, 000 or a stronger retest of the $60, 000 support level, and based on recent whale activities, the latter scenario is more likely.
$BTC #bearish