Bitcoin Whales Retreat Ahead of Imminent Crash

Bitcoin Transaction Activity Suffers Steep Decline

The typically vibrant Bitcoin (BTC) market has hit a slump, with transaction activity above $100,000 plummeting tens of percent. What’s even more surprising is that the slowdown was noticeable even before the recent price decline, which fell below $62,000. This wave of pessimism may be paving the way for a potential trend reversal.

Large Transactions See Massive Drop

According to on-chain data from Santiment, the number of transactions above $100,000 has declined significantly. In the past two days, a total of 9,923 such transactions took place, a staggering 42% decrease from the 17,091 reported previously.

The substantial drop is likely attributed to increased market uncertainty. Bitcoin’s price has been struggling for weeks, which has led to a decreased interest from many crypto investors.

The growing gloominess in the crypto market is also apparent in the futures market. Ki Young Ju of CryptoQuant noticed a risk-off climate on the X-platform, indicating that investors are currently hesitant to take any risks. This often precedes a period of weak performance for the price of Bitcoin.

Bitcoin’s Price Plummets to a Six-Week Low

Bitcoin experienced a sharp price drop overnight, with its recent low of just above $63,000 easily surpassed. The price briefly stabilized around $62,000 before falling through like a stone.

The current price of $61,300 places Bitcoin at its lowest level in almost six weeks. With weeks of uncertainty behind us, Bitcoin has finally reached its crucial support zone around $60,000. The question on everyone’s mind is whether the bulls will be able to mount a comeback.

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The Fear & Greed Index has, for the first time in weeks, shifted from ‘greedy’ to ‘neutral’. The sentiment in the crypto market has seemingly turned, with confidence in the bull market beginning to wane.

As the halving approached, many expected Bitcoin’s price to skyrocket. However, past cycles show that the price often stabilizes for months before a bull market begins. Keeping Bitcoin above $60,000 will be crucial to maintaining its consolidation range.

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