Whale Sales Signal Correction May Not Be Over Yet

Retail investors have been buying up Bitcoin as prices dipped below $70,000, but large holders known as 'whales' have been selling into this demand. According to Santiment, a crypto analytics firm, these whales sold off about 66% of their accumulated positions during the recent price surge.

The data from Santiment showed that whale wallets holding between 10 and 10,000 Bitcoin spent eight days building up positions in late February and early March when prices ranged from $62,900 to $69,600. However, as Bitcoin climbed to $74,000 on Thursday, these whales began offloading their holdings.

On the other hand, retail investors defined as wallets holding less than 0.01 Bitcoin have been steadily adding to their positions as prices slipped back below $70,000. Santiment flagged this divergence as a warning sign, stating that when 'retail buys while whales sell, it typically signals that the correction is not yet over.'

The total supply of Bitcoin held at an unrealized loss also adds pressure to the outlook. Glassnode data showed that around 43% of Bitcoin's total supply is currently held at a loss.