Whale Activity Fuels Concerns of Deeper Correction in Bitcoin
Bitcoin's recent 2% correction has led to a market debate about whether it's just another weak hand shake-out or something more. On-chain data suggests that a scenario where weak hands sell off is quite plausible.
The technical perspective shows that BTC's price approaching $82k after the weekly wick failed to reclaim $87k creates an environment for a liquidity sweep, forcing leveraged longs to unwind their positions as the upside thesis is flushed away. Coinglass reports that the amount of long liquidations crossed above $250 million, representing the largest flush in almost a week.
However, this correction could simply be regarded as another deleveraging cycle, clearing the way for BTC to make another attempt at breaking above $87k in the early October cycle. Notably, this is where the chart gains more weight.
A Bitcoin whale has just moved 4,500 BTC worth of $378.79 million. The wallet was inactive for over four years before suddenly moving the coins. A nearly identical move happened on September 25th, making the timing hard to ignore.
The macro factors add to the significance of this whale move. Bitcoin's correction towards $82k isn't happening in isolation. Macro FUD is building again, which may explain why the Bitcoin Fear & Greed Index hasn't entered 'extreme' greed despite BTC closing September with a 6% ROI and Bitcoin ETFs seeing more than $2 billion in terms of monthly inflows.
The 10-year U.S. Treasury yield has climbed towards 5.2%, close to its highest level since July 2007, pricing in more tightening by the Fed and adding another layer of pressure to Bitcoin's already precarious setup. Against this background, the timing of the Bitcoin whale move is far from accidental.