Bitcoin’s wonderful rally to a new all-time high of $125,700 on Sunday was met almost immediately by a sharp correction. This sudden pullback, which is expected given the all-time high, saw Bitcoin break below $123,000 in less than two hours after the new record.
Interestingly, on-chain data shows a notable increase in whale activity during and after the all-time high to and from exchanges. One such example is a massive $200 million Bitcoin transfer into Binance, a move that appears to have been a calculated profit-taking action by a whale address.
Whale Profit-Taking Contributes To Selling Pressure
Shortly after Bitcoin hit its record high, blockchain data first revealed by whale transaction tracker Whale Alert on X shows that a whale address identified as “3NVeX” transferred a total of 1,550 BTC, worth nearly $200 million, to Binance in two separate transactions. The first transaction involved the transfer of 800 BTC worth $100 million, followed by another transfer of 750 BTC worth $93.7 million.
The timing of these transfers coincided almost perfectly with the recent price top, and the whale most likely sold into the rally. Once the transfers were completed, the wallet held only about 0.1 BTC, meaning the whale had sold off most of their holdings.
According to data from whale transaction tracker Whale Alert shared on X, the number of large Bitcoin transfers to and from exchanges has increased notably over the past few days. Several multi-million-dollar transactions, each exceeding $10 million, have been spotted moving between private wallets and major trading platforms such as Binance and Coinbase.
Another notable example is the transfer of 401 BTC worth $50.2 million from an unknown wallet address “1Jip8s” into Coinbase Institutional. Not long after, 401 BTC were sent from an unknown wallet “1E8p4n” into Coinbase Institutional in another separate transaction. Altogether, the sudden wave of high inflows across multiple platforms paints a clear picture of whales locking in profits after Bitcoin’s all-time high.
Bitcoin Price Outlook
Bitcoin’s price quickly slipped below $123,000 following the whale-triggered selloff, before rebounding to around $122,530. The pullback was relatively modest compared to previous all-time highs, but it nonetheless served as a reminder of how easily large holders can influence price action.
Despite the brief downturn, the correction may prove healthy for Bitcoin’s rally. It allows overheated momentum to cool off and sets the stage for a more sustainable advance once selling pressure eases. Data from Whale Alerts shows cases of millions of dollars worth of BTC also leaving crypto exchanges for private, unknown wallets.
At the time of writing, Bitcoin is trading at $123,380. As long as Bitcoin maintains support above $120,000, its long-term outlook remains bullish, and it may as well create a new all-time high before the week runs out. This also depends on how well Spot Bitcoin ETFs perform this week.
Source: https://www.newsbtc.com/bitcoin-news/why-the-bitcoin-price-crashed/