The Bitcoin price could crash even further as whales begin to sell off recently accumulated BTC tokens. The coin resumed its decline after initially reclaiming the $74,000 mark during the week.
Bitcoin Price Crash May Continue Despite Rebound: Santiment
In their new report, Santiment explained that the whales “accumulated heavily” from February 23 to Mar. 3, during which the cryptocurrency traded between $62,900 and $69,600.
Currently, retail investors have been buying up the coin after it fell below $70,000, but the whales’ activities indicate that the Bitcoin price could still crash, at least based on past trends.
Since Wednesday, the cryptocurrency’s rise above $70,000 and reaching $74,000 levels has seen the whales selling 66% of their recent buying activity.
“The moment Bitcoin hit $74k, these key stakeholders began taking profit,” they said. When retail buys while whales sell, it typically signals that the correction is not yet over.”
This has also coincided with the fact that the spot Bitcoin exchange-traded funds have experienced the largest outflows since February 12. This is according to SoSoValue data, where a total of $348.9 million in net outflows has been recorded for the 11 products.
Source: SoSoValue
BTC has also recorded its most oversold levels, as indicated by Kalshi. This further supports the idea of a deeper Bitcoin price crash.
BTC Retraces to $67k Amid Positive News
BTC has continued to fall to $67,000, according to CoinMarketCap data. This comes after the crypto fell 3% over the last 24 hours. The coin fell significantly from its high over the last week. This is a recurring event over the last few months, where the cryptocurrency has been selling off at the end of the week.
Source: CoinMarketCap; BTC price daily chart
This comes at a time when the price of the coin has been increasing significantly to levels nearing $74,000 within the past week, following a series of positive occurrences. The Bitcoin price, however, crashed shortly after. The coin had retreated to below $69,000 by the end of the week, losing $110 billion in market cap.
This comes after what many have said has been one of the most bullish stretches of regulatory and institutional news for the sector. For starters, the crypto market bill finally got some positive news on its progress. Eleanor Terrett said on Friday that the negotiations over the CLARITY Act are continuing in the right direction.
On the institutional side, Morgan Stanley announced Bank of New York Mellon as custodian for its spot bitcoin ETF exposure. This was shared shortly after the bank asked the OCC to approve its crypto-focused national trust bank.
Usually, any of these developments would have been enough to ignite a market rally in previous crypto cycles. Instead, the market is seemingly ignoring these developments.