The leading cryptocurrency has been on a remarkable rally recently, hitting a new all-time high above $72,000. However, this surge has been accompanied by significant activity among Bitcoin whales—addresses holding over 1,000 BTC. These whales have been aggressively cashing out profits, raising concerns among analysts about a potential correction in the cryptocurrency’s price.
Recent data reveals a notable trend among #Bitcoin whales. Those holding over 1,000 $BTC are increasingly cashing out, resulting in a 4.83% drop in such #BTC addresses over the last two weeks. pic.twitter.com/IL7OQAGSwE
— Ali (@ali_charts) March 12, 2024
Whale Profit-Taking and Market Impact
Analyst Ali Martinez, who has a following of 52,000 on X, pointed out a reduction in the number of Bitcoin whale addresses holding more than 1,000 BTC. This figure has decreased by 4.83% in the past two weeks, indicating that major holders are taking advantage of the recent price surge to sell their holdings. These sizable sell-offs by Bitcoin whales may result in a notable downturn in the cryptocurrency’s price.
According to Coinglass, approximately $29.40 million worth of Bitcoin long positions were liquidated in the past 24 hours. While this amount is lower than average long liquidations, its impact on the market cannot be overlooked, especially as Bitcoin’s price rises.
Michaël van de Poppe, a prominent crypto analyst, acknowledged Bitcoin’s strength in reaching a new all-time high. However, he cautioned about a potential correction in the price, estimating it could be between 20% and 30%. To hedge against potential losses, Poppe suggested shifting focus to altcoins.
Analysts have raised concerns about the recent liquidations by Bitcoin whales and the declining number of whale addresses holding large amounts of BTC. They believe these factors could contribute to increased market volatility and a correction in Bitcoin’s price trajectory.
Bitcoin Price and Market Dynamics
Despite the recent price rally, Bitcoin’s price experienced a slight decline, falling below the $72,000 mark. At the time of writing, Bitcoin was trading at $71,882.94, down by 0.50% from its all-time high. The 24-hour trade volume for BTC slipped 5.73% to $53.4 billion, indicating a slight decrease in trading activity. Additionally, the cryptocurrency’s market cap stood at $1.41 trillion.
The recent actions of Bitcoin whales, along with the cautious outlook from analysts, suggest that the cryptocurrency market could be entering a period of increased volatility and potential price correction.
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