The market is debating whether the recent correction represents just another weak hand shake-out.
On-chain data shows that such a scenario is indeed quite plausible. From a technical perspective, BTC’s almost 2% pullback has caused its price to approach $82k after the weekly wick failed to reclaim $87k.
This creates the perfect environment for a liquidity sweep, which has forced leveraged longs to unwind their positions as the upside thesis is abruptly flushed away.
Coinglass reports that the amount of long liquidations crossed above $250 million, representing the largest flush in almost a week. As of now, the liquidations have not fed through to the ETF market, with demand for Bitcoin seemingly still in check.
In this context, the latest correction could simply be regarded as another deleveraging cycle, which is likely to clear the way for BTC to make another attempt at breaking above $87k in the early October cycle.
Notably, this is where the chart above starts gaining more weight.
According to Lookonchain, yet another Bitcoin whale has just moved 4,500 BTC worth of $378.79 million. The wallet was inactive for more than four years before suddenly moving the coins.
Even more suspicious is the fact that a nearly identical move happened on the 25th of September, making the timing hard to ignore.
Unsurprisingly, the move sparked off fresh market reaction, with analysts mulling over if it is just repositioning or a signal of potential selling pressure.
However, given Bitcoin’s struggle to reclaim key levels, the bigger question is whether this whale activity could be an early warning sign that BTC’s 2% correction is more than just a routine weak-hand shakeout.
Bitcoin whale move adds fresh uncertainty to the current pullback
Macro factors are adding to the significance of this whale move. Notably, Bitcoin’s correction towards $82k isn’t happening in isolation.
Macro FUD is building again, which may explain why the Bitcoin Fear & Greed Index hasn’t entered “extreme” greed despite BTC closing September with a 6% ROI and Bitcoin ETFs seeing more than $2 billion in terms of monthly inflows.
The chart below highlights the key macro pressure. The 10-year U.S. Treasury yield has climbed towards 5.2% and is close to its highest level since July 2007.
Markets are pricing in more tightening by the Fed, and higher yields could add another layer of pressure to Bitcoin’s [BTC] already precarious setup.
Against this background, the timing of the Bitcoin whale move is far from accidental.
On the bullish note, though, Bitcoin’s exchange balance is still trending lower and has now reached a four-month low, so the latest transfer doesn’t confirm selling pressure just yet.
However, two nearly identical moves by whales in less than a week are hard to ignore.
With macro FUD building and BTC’s technical structure losing strength, such whale activity is expected to become a key trend to watch as the correction proceeds.
If the pattern persists while exchange balances begin to rise, the current 2% BTC pullback could mark the early stages of a deeper correction rather than just a short-term liquidity flush.
Final Summary
- Bitcoin whale moves are raising fresh selling concerns.
- A deeper correction could follow if exchange balances start rising.