Bitcoin’s impressive surge to an all-time high of $125,700 on Sunday was swiftly followed by a sharp correction. This abrupt decline, predictable after such a peak, saw Bitcoin dip below $123,000 in under two hours post-record.
Notably, on-chain analytics indicate a significant uptick in whale activities before and after the peak, particularly in transactions to and from exchanges. A striking instance is a massive $200 million Bitcoin transfer to Binance, seemingly a strategic profit-taking maneuver executed by a whale address.
Whale Profit-Taking Intensifies Selling Pressure
Shortly after Bitcoin achieved its record, blockchain data first highlighted by whale tracking platform Whale Alert on X revealed that a whale address known as “3NVeX” sent a total of 1,550 BTC, valued at approximately $200 million, to Binance through two transactions. The first transaction consisted of 800 BTC worth $100 million, subsequently followed by another transfer of 750 BTC, valued at $93.7 million.
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The timing of these transactions aligns almost perfectly with the recent peak, suggesting that the whale likely took advantage of the rally to sell. After the transfers, the wallet contained merely around 0.1 BTC, indicating that the whale had divested most of their holdings.
Data from whale tracking service Whale Alert, shared on X, indicates that large Bitcoin transfers to and from exchanges have surged in recent days. Numerous transactions exceeding $10 million have been observed relocating between private wallets and major exchanges like Binance and Coinbase.
Another significant instance involves the transfer of 401 BTC, valued at $50.2 million, from an undisclosed wallet “1Jip8s” to Coinbase Institutional. Shortly after, 401 BTC were transferred from another unidentified wallet “1E8p4n” into Coinbase Institutional in a separate transaction. Overall, this sudden influx of high-value transfers across various platforms highlights the pattern of whales securing profits following Bitcoin’s all-time high.
Bitcoin Price Forecast
Bitcoin’s price promptly fell below $123,000 after the whale-induced selloff, eventually stabilizing around $122,530. While this pullback was modest compared to previous all-time highs, it underscores how significantly large holders can sway price movements.
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Despite the brief decline, this correction could be beneficial for Bitcoin’s ongoing rally. It provides an opportunity for overheated momentum to stabilize and lays the groundwork for a more sustainable advance once the selling pressure subsides. Whale Alert’s data also shows instances of millions in BTC exiting crypto exchanges to private, unknown wallets.
As of this writing, Bitcoin is trading at $123,380. Provided Bitcoin can hold support above $120,000, its long-term outlook remains positive, with the possibility of reaching a new all-time high before the week concludes. This will also depend on the performance of Spot Bitcoin ETFs this week.
Featured image from Pixabay, chart from Tradingview.com
