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Bitcoin (BTC) continued its downward trajectory. In the last 24 hours, the asset has fallen by 1.39%, pushing its total losses for the month to more than 30%.
The general bear market environment suggests that it is the main driver behind the weakness, while new signals on the chain show that the whale’s concentrated activity may contribute to amplifying Bitcoin’s downward trend, according to reports.
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The whale activity raises concerns about Bitcoin’s short-term volatility
Blockchain analysis company Locochain said in a post on the X platform (formerly Twitter) that whale deposits (3NVeXm) coincide with The price of Bitcoin is falling. Data from Arkham showed that the whale started depositing Bitcoin on Binance three weeks ago, with modest amounts leaving.
Activity is picking up this week. On February 11, the whale transferred 5,000 BTC to the platform. The chain of transfers continued with the wallet sending another 2,800 coins today alone.
Le Conchaine noted that the timing of these deposits affected… Short term price action.
The Loconchain post said that every time one deposits BTC, the price goes down. Yesterday, I noticed when he made a deposit – and immediately after that, Bitcoin fell more than 3%.
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The latest available data shows that the address still contains 166.5 BTC, valued at more than $11 million at current market prices. A large influx of currencies towards exchanges is often interpreted as a signal of readiness to sell, as investors typically move assets to trading platforms to liquidate or hedge positions.
Note, although correlation does not necessarily imply causation, that the scale and timing of these transfers increased immediate selling pressure in an already very fragile market structure. In periods of high sensitivity, even sales expectations from whales can exacerbate the pullback trend as traders react to the chain’s signals andAdjust their positions accordingly.
Yield signals indicate market pressure
The transfers come at a time of uncertainty in the Bitcoin market Noticeable weakness throughout Market. An analyst explained that Bitcoin’s realized losses have increased to $2.3 billion.
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The analysis stated that this puts us in the top 3-5 largest loss events ever recorded, as there have been only a few moments in the history of Bitcoin that have seen this level of capitulation.
The analyst added that short holders, defined as those who hold currencies for less than 155 days, appear to be largely driving the current capitulation. It appears that investors who accumulated BTC at $80,000-110,000 are now experiencing significant losses, indicating that highly leveraged selling participants with weak hands are exiting their positions.
In contrast, long-term holders do not appear to be the primary source of this latest selloff. Historically, it usually holds a bearish period.
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In the past, extreme loss spikes like this have caused rebounds, the analyst explained. We see now: BTC bounced from 60K to 71K after capitulation. However, this can only be the beginning of a deep and slow bleeding, as temporary increases also occur in extended bear markets.
At the same time, BeInCrypto has already highlighted several signs that BTC It may even be in the early days From a wider cycle, leaving room for more downside risks. Crypto Quant analysts have indicated a level $55,000 as the price of Bitcoin Achieved, a level that has historically been associated with the bottom of bear markets.
During the previous sessions, BTC traded 24% to 30% below its price achieved before stabilizing. Currently, Bitcoin is still above that level.
The closer BTC gets to its achieved price zone, the more historically it enters a period of consolidation before the recovery begins. Some analysts see a deeper correction towards the sub-$40,000 range A more pronounced background can be formed.
