On-chain analytics reveal a significant increase in Bitcoin whale transactions following the latest rally, suggesting potential profit-taking behavior. The Whale Transaction Count, an indicator tracking transfers over $100,000, shows heightened activity, with a peak of 11,697 transfers in 24 hours.
This is the highest level since August, when a similar spike coincided with a price crash, implying selling activities. Currently, Bitcoin's price has dipped below $67,000, supporting the hypothesis of profit-taking by whales.
Additionally, Bitcoin's Social Dominance has surged to 25.5%, the highest since July, indicating increased mindshare relative to altcoins and signaling potential FOMO among traders. Historically, such hype often precedes market tops.
Both heightened whale activity and increased social dominance indicate a possible pause in the rally, attributed to profit-taking and heightened crowd interest. Bitcoin is currently trading around $66,900, experiencing a 9% rise over the past week.
