 ▲ Bitcoin (BTC) |
As Bitcoin (BTC) fell below $70,000 and entered a correction phase, retail investors have begun buying the dip. However, warnings have emerged that the downtrend could extend as whales take profits and offload large volumes.
On March 7, on-chain analytics platform Santiment reported that key whales holding between 10 BTC and 10,000 BTC have sold 66% of the coins they accumulated since last Wednesday. Shortly after Bitcoin touched $74,000, these large holders quickly moved to realize profits. This contrasts with their aggressive accumulation between February 23 and March 3, when prices ranged from $62,900 to $69,600.
Meanwhile, retail investors holding less than 0.01 BTC have been increasing their positions as prices dipped below $70,000. Santiment noted, “When retail investors are buying while whales are selling, it typically signals that the price correction is not yet over.” Amid the current decline, the Crypto Fear & Greed Index has fallen to 12, entering the zone of extreme fear.
Concerns over further downside are also growing among experts. Michael van de Poppe, founder of MN Trading Capital, projected that if Bitcoin fails to establish support in the $67,000 to $68,000 range, it is highly likely to retest previous lows to secure liquidity. In fact, U.S.-based spot Bitcoin ETFs recorded net outflows of $348.9 million in a single day, marking the largest capital withdrawal in three weeks.
However, some analysts believe the $60,000 level will serve as a strong psychological floor. Economist Timothy Peterson, citing the Bitcoin price-to-Metcalfe value chart, explained that the $60,000 range has historically formed a bottom for Bitcoin. Peterson estimated a 99.5% probability that Bitcoin will remain above $60,000, adding that the current downturn is unlikely to break below long-term support.
The Bitcoin market is currently experiencing heightened volatility as whale selling pressure clashes with retail dip-buying. Santiment’s data suggests that additional downward pressure may persist until large investors stabilize their supply dynamics. Whether Bitcoin can defend the $68,000 support level and regain momentum toward reclaiming $70,000 will be a key factor determining the market’s next direction.
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