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- Bitcoin retreats from $124,500, dropping to an 11-day low of $114,950 amid recent market weakness.
- Whales transfer 31,968 BTC worth $3.78 billion after years of dormancy, signaling a potential market shift.
- Resistance levels spark sell-offs, while market trends and external factors fuel uncertainty for Bitcoin’s price.
Bitcoin price is backtracking from the all-time high achieved in its price of $124,500 recorded on Coinbase. The cryptocurrency was weak in the week due to trading in a narrow range during the weekend.
Bitcoin consolidated between $119,400 and $116,920 before breaking lower at the beginning of Monday in the Asian session. In European trade, the price briefly plumbed an 11-day low of $114,950. Nonetheless, the 50-day exponential moving average was partially supportive, therefore ending the fall.
Dormant Bitcoin Transfer of $3.78 Billion Sparks Concerns
Larger stocks of the dormant Bitcoin have been moved by the so-called whales, which is particularly noteworthy. According to CryptoQuant, a transfer of 31,968 BTC, or $3.78 billion, was made that has not been maintained for a period of up to five years.
This is not the conventional trend, as whales are more inclined to maintain Bitcoins for an extended period. It indicates that such holders might be planning to sell or relocate their assets to more secure depositories.
In the past, significant dormant Bitcoin transfers have been an indication of big price changes. To illustrate, the transfer of 33,803 BTC in January of 2024 marked an all-time low in price. Similar actions in March, June, and December of 2024 were observed together with local tops or further selling pressure. These trends have invoked suspicion that the recent movements of whales may be predictive of a major shift in the price trend of Bitcoin.
Source: X
Also Read: Metaplanet Boosts Bitcoin Treasury to 18,888 BTC After Latest 13.7B Yen Purchase
Bitcoin Faces Uncertainty as Whale Activity Splits Market Sentiment
Market sentiment has been split by the recent activity of whales. There are some traders who think that the movements reflect a possibility of an upward price move, and others fear a further decline. Since the market is covering these events closely, a significant change of Bitcoin price might occur in the nearest future.
As of press time, Bitcoin is trading at $116,193.88, a 1.18% decrease in the previous 24 hours. The asset lost the high of the day at $118,595.78 following rejection at the resistance level above the candle of $121,500.
This rejection caused stop-loss orders to be triggered, ultimately speeding the fall in price. The trading volume of Bitcoin is 51.49% higher than before the drop, at a value of $69.17 million, indicating good market participation.
The price of Bitcoin is also influenced by broader market trends. The correlation of cryptocurrency with risk assets is again present, and investors are awaiting the speech of the Chair of the Federal Reserve, Jerome Powell, later this week. His economic remarks can influence market sentiment and significantly impact the price of Bitcoin.
Also Read: CMB International Introduces Regulated Cryptocurrency Trading for Chinese Investors in Hong Kong
