 ▲ Bitcoin (BTC) |
Bitcoin (BTC), the leading asset in the virtual asset market, has entered a downward trend after hitting a high of $74,000. Amid this decline, a classic bearish signal has emerged: large-scale investors, known as whales, are offloading significant holdings while retail investors absorb the supply.
On March 7 (local time), Cointelegraph reported, citing data from on-chain analytics platform Santiment, that Bitcoin’s downtrend may continue despite the price falling below $70,000. According to Santiment, whales holding between 10 and 10,000 BTC aggressively accumulated during the period from February 23 to March 3, when Bitcoin traded between $62,900 and $69,600. However, as soon as the price touched $74,000, these whales sold approximately 66% of their recent purchases into the market, taking profits.
While whales secured gains and exited the market, retail investors holding less than 0.01 BTC have been eagerly buying the dip. Santiment noted, “A pattern where retail investors are buying while whales are selling is typically a warning sign that the correction is not over.” Historically, price direction in the crypto market has been driven more by whale movements than by retail investor sentiment.
Market experts interpret this divergence between whales and retail investors as a sign of increasing structural vulnerability. Michael van de Poppe, founder of MN Trading Capital, warned that if Bitcoin fails to hold support in the $67,000 to $68,000 range, further downside could occur as the market seeks liquidity and retests previous lows. In fact, U.S. spot Bitcoin ETFs recorded net outflows totaling $348.9 million in March—the largest so far this month—indicating clearer signs of institutional withdrawal.
On-chain indicators also reinforce the bearish outlook. Following the recent price drop, the Crypto Fear & Greed Index fell six points in a single day to 12, entering the “extreme fear” zone. This suggests that investors lack confidence in the current rebound attempts. With major players unloading large holdings to realize profits, retail buying alone appears insufficient to reverse the prevailing trend.
For Bitcoin to regain stability, signs must emerge that whales have halted their sell-offs and resumed accumulation. However, institutions and whales are currently leading the market’s exit, raising expectations of heightened volatility in the near term. Investors are advised to avoid impulsive buying amid potential distribution patterns by major players and instead closely monitor key support levels and whale wallet movements before making cautious decisions.
Disclaimer: This article is for investment reference only and does not take responsibility for any investment losses incurred based on its content. The information provided should be interpreted for informational purposes only.