Bitcoin Correction Risk Grows as Whale Selling Adds Supply Near Resistance

Bitcoin's rapid surge to near $80,000 has raised concerns about a potential price correction. The cryptocurrency failed to break through this resistance level and fell to around $77,325 after a $15,000 two-day advance.

A large Bitcoin whale sold 7,700 BTC worth $576.6 million in three days, adding supply near the major resistance zone. Another address sold 2,700 BTC for about $211.8 million on Saturday, according to Lookonchain tracking data.

The relative strength index (RSI) reached historically stretched short-term levels at 87, while the Fear and Greed Index jumped from 34 last week to 71 today, indicating a state of greed in the market.

Sustained spot demand offers a counterweight to whale selling. United States Bitcoin ETFs attracted $606.3 million on Thursday and about $1.61 billion during the week, showing institutions participated in the rebound.