Bitcoin’s price has recently experienced a surge, pushing it close to its highest value in three months. This surge has brought Bitcoin closer to its all-time high (ATH), sparking renewed optimism among traders and investors.
However, despite this momentum, the presence of large whale transactions and substantial profits suggests a possible market pullback, putting Bitcoin's bullish outlook at risk.
Bitcoin is the center of attention
The latest data from Santiment reveals a significant increase in whale transactions, with Bitcoin transactions above $100,000 reaching a 10-week high. This increase in whale activity signals a shift in market behavior. Large holders are known to influence price movements by accumulating or dumping their assets. Currently, the high volume of whale transactions is raising concerns about a possible price correction.
At the same time, Bitcoin’s dominance in social media conversations has grown substantially, accounting for 25% of all crypto-related discussions. This trend indicates a shift in attention away from altcoins, with many traders focusing on Bitcoin’s performance.
Historically, when Bitcoin captures such a large share of the crypto spotlight, it often precedes market volatility, increasing the likelihood of a pullback.
Both signals are indications that the rally may be on pause due to profit-taking by key stakeholders and high FOMO from the public. However, with medium- and long-term metrics still bullish, any price correction would likely be brief, Santiment said.
Read more: What is Bitcoin Halving? Everything you need to know
Bitcoin Whale Transaction and Media Discussion. Source: Santiment
The macro moment paints an equally cautious picture. Currently, 95% of Bitcoin's circulating supply is in profit, a statistic that historically aligns with market tops.
When the majority of holders are in profit, selling pressure often increases, leading to downward price corrections. This scenario has played out in previous market cycles and appears to be repeating itself in this cycle.
High profitability encourages many investors to lock in their gains, thus putting downward pressure on the price of Bitcoin. If these conditions persist, a market top could form, triggering a decline.
BTC Supply in Profit. Source: Santiment
Price prediction
Bitcoin is currently trading at $67,432, approaching the critical resistance level of $68,000. Furthermore, it is on the verge of breaking out of a descending wedge pattern that has been in play since March. A breakout from this pattern could fuel a rally of up to 27%, potentially taking the price to $88,077.
However, past patterns indicate that Bitcoin may not sustain such a rally. A breakout attempt could fail, leading to a correction that would bring the price back to $65,000. Such price action would likely result in a temporary dip rather than a sustained move towards a new ATH.
Read more: Bitcoin Price Prediction 2024/2025/2030
BTC Price Analysis. Source: TradingView
Without the necessary momentum, Bitcoin will struggle to surpass its ATH of $73,800, a level that remains just 9% above the current price. Failure to break above this level would invalidate the bullish outlook, keeping Bitcoin below its previous peak.
Bitcoin item near all-time high: rally or correction in sight? was first seen on BeInCrypto Brasil.
