Bitcoin's large holders, or 'whales,' have reduced their coin holdings since the cryptocurrency peaked in March. This might appear bearish, but there's no need for alarm.
These key stakeholders are waiting strategically as Bitcoin navigates ongoing market volatility. According to a post by Santiment on September 11, there has been a 33.6% decline in weekly BTC whale transactions over $100,000 since mid-August. This drop coincides with a reduction in Bitcoin's price and prominent whale transactions, which fell from 88,163 in March to 58,539 by mid-August.
Though this might seem bearish, Santiment notes that whales can be active in both bull and bear markets. This indicates they are waiting for extreme market conditions, either fear or greed, to make their next moves.
The current market sentiment is 'fear,' according to the Crypto Fear & Greed Index. Analysts suggest this volatility might be temporary. Prominent analyst Daan Crypto noted the ongoing volatility in Bitcoin trading activity, attributing it to the market's behavior over recent weeks.
BeinCrypto's analysis highlights a widening gap between Bitcoin's Bollinger Bands, indicating rising volatility. This suggests that Bitcoin's price might move sharply in either direction. If it rises, it could target $64,295, whereas a drop could see it revisiting the August low of $49,086.
