Bitcoin’s recent pullback may not be finished as retail investors increase buying activity while large holders continue selling, according to new on chain data from Santiment.
Bitcoin Whales Reduce Holdings After $74K Rally
Santiment data shows that major Bitcoin holders wallets containing between 10 and 10,000 BTC aggressively accumulated the cryptocurrency between Feb. 23 and Mar. 3 while prices traded in the $62,900 to $69,600 range. However, sentiment shifted when Bitcoin surged past $70,000 and briefly touched $74,000 earlier this week.
Since Wednesday, these whale addresses have sold roughly 66% of the Bitcoin they accumulated during that period, indicating widespread profit-taking after the recent rally.
Retail Investors Increasing Bitcoin Accumulation
At the same time, smaller investors holding less than 0.01 BTC have been steadily increasing their positions. Historically, Santiment notes that when retail investors buy while whales distribute holdings, it often signals that the ongoing market correction has not fully played out.
Bitcoin was trading near $67,484 at the time of reporting, according to market data.
Market Sentiment and ETF Outflows
The recent decline has pushed the Crypto Fear & Greed Index deeper into “Extreme Fear,” falling to a score of 12. Meanwhile, U.S. spot Bitcoin exchange-traded funds recorded $348.9 million in net outflows, marking their largest daily withdrawal since Feb. 12.
Some analysts suggest Bitcoin must hold the $67,000–$68,000 support zone to avoid revisiting lower liquidity levels before any potential recovery.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.