After several attempts to hold above $98,000 and break through the psychological barrier of $100,000, the price of bitcoin (BTC) sharply fell to below $95,000. This drop coincided with reports of significant transfers by large bitcoin holders, known as 'whales', to the Binance exchange, raising speculation about profit-taking.

Are whales starting to sell?

Large investors, or whales, have the ability to significantly influence price movements by dumping or accumulating large amounts of cryptocurrency. Their actions are closely monitored by analysts. The Lookonchain platform recorded a transfer of 1,000 BTC (about $97.5 million) to Binance from one of the largest whales, who accumulated 11,657 BTC from March to October at an average price of $66,953.

This transfer occurred at a time when bitcoin rose nearly 50% from the average entry price of this investor, leading to speculation that the whale decided to lock in some profits.

«A giant whale deposited 1,000 $BTC ($97.5M) on #Binance in the last 4 hours! This whale accumulated 11,657 $BTC ($780.5M) from March to October at an average price of $66,953,» reports Lookonchain.

Almost immediately after this transaction, the price of BTC fell from $98,000 to $95,000 and then slightly recovered. Despite the rebound, the asset continues to trade below the key mark of $96,175, which is an important support level.


Why is $96,175 important?

According to analyst Ali, more than a million bitcoin addresses have acquired a total of 950,000 BTC at an average price of $96,175. This makes this mark an important level on which further growth depends.


«As long as #Bitcoin $BTC stays above $96,175, the odds favor the bulls!» — Ali wrote on Twitter.


Concerns about market overheating

Despite the decline, experts believe there is no reason to panic yet. Analyst Rafael from Glassnode pointed out the relative unrealized profit indicator, which shows the level of paper gains of BTC holders. Historically, a value above 0.9 indicated market overheating and led to sharp corrections.

Currently, this indicator stands at 0.74, which is below critical levels of past cycles.



«The relative unrealized profit of long-term holders of #bitcoin is 0.74, which is significantly lower than overheated levels. There is room for growth,» noted Rafael.


Conclusion

Current correction #BTC may be related to profit-taking by large investors. However, fundamental indicators remain stable, leaving room for further growth. Holding key support at $96,175 will be an important indicator for a bullish trend.

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