Bitcoin (BTC) Whale Activity Spikes, Here’s Why BTC Price Can Correct Further

After hitting its all-time high above $61,600 last Saturday, Bitcoin (BTC) has corrected more than 10% so far slipping below $54,000 earlier today. It turns out that as the BTC price corrected sharply on Monday, the Bitcoin whales were most active during this period.

On-chain data provider Santiment notes nearly 24K whale transactions each worth over $100,000+ were handled by the Bitcoin network in the last three weeks. Interestingly, the surge in whale transactions coincides with the BTC price correction.

On the other hand, traders are showing a clear sign of restlessness amid the current BTC price volatility. The Santiment algorithm shows that the BTC price drop comes amid a clear slump in Bitcoin’s Positive Santiment score. This could possibly lead to further price correction in Bitcoin. As CoinGape reported earlier today, BTC price correction to $50,000 levels looks inevitable.

Bitcoin Long-Term Holders Selling But Short-Term Holders Accumulating

Over the last few weeks, there’s been a solid surge in the number of new participants joining the Bitcoin (BTC) network. Well, this is a clear indication retail investors have been joining the BTC network in big numbers.

On the other hand, another data from Glassnode shows that while long-term holders have been selling on one end, the short-term BTC holders have been buying on the other end.

Courtesy: Glassnode

As per the latest insights offered by Glassnode, the Bitcoin long-term holders (LTHs) have been liquidating their supply since November 2020. The Glassnode report states:

“We can see that since late November 2020 ($17.8k), LTHs have gradually sold around 1.4M BTC (blue, smooth downtrend) whilst STH have accumulated these coins and taken on the volatility (red, volatile uptrend). This is typical for bull markets.

This paints a picture where current STH demand remains strong and LTH are releasing coins gradually and at a slowing rate. However, it is important to keep in mind that LTHs also have a much larger supply still in hand which is both bullish for HODLed supply, but may also become overhead resistance as prices rise further or if a more sustained correction ensues”.