Crypto Market Crashes 12.5% — Bitcoin Whales Dump 6,813 BTC in Panic Move

The crypto market crash has witnessed a pullback of 10% this week. Amid this pullback, the retail sentiment to buy-the-dip fails to find a bullish turnaround. While the intraday recovery provides some relief, analysts advise “brace for impact.”

Vishal Dixit By Vishal Dixit Marco T. Lanz Edited by Marco T. Lanz Updated 4 mins read
Crypto Market Crashes 12.5% — Bitcoin Whales Dump 6,813 BTC in Panic Move

Key Notes

  • Whale wallets dumped 6,813 BTC, marking the largest collective sell-off since last July.
  • Retail crypto traders’ bullish sentiment often precedes corrections, signaling potential further downside.
  • BTC must hold $84,000 to avoid a deeper drop to $80,000, with key resistance at $90,000.

In the first three days of this week, the total crypto market dropped by nearly 12.5% from $3.14 trillion to $2.75 trillion. During this downfall, the Bitcoin BTC $82 081 24h volatility: 0.4% Market cap: $1.63 T Vol. 24h: $14.77 B price dropped from $96,000 to $84,000. This accounted for a 13% drop.

Currently, the total crypto market cap is witnessing a short-term intraday recovery of 2.72%, rising back to $2.83 trillion. Amid this recovery, Bitcoin has bounced back to $86,833, marking an intraday recovery of 3.29%. With this short-term recovery, has the crypto market crash bottomed out, or is a steeper correction on the horizon?

Crypto Quant’s CEO Warns: Panic Sellers Are Noobs

According to Ki Young Ju, the founder and CEO of Cryptocoin, the short-term pullback in the crypto market is extremely normal. According per his latest tweet, a 30% correction in a Bitcoin bull cycle is common based on the historic bull performances.

In the 2021 bull market, before hitting a new all-time high, the BTC price dropped nearly 53% in value. Hence, the historical data generalizes the extreme volatility and paints an optimistic future.

As per the analyst, buying when prices rise and selling when they fall is the worst investment strategy. Furthermore, the analyst highlights his previous tweet where he predicted a 30% potential dip from the all-time high.

As per his tweet, the estimated pullback was from $110,000 to $77,000.

There’s Always More Room For Correction

In an X post, Ali Martinez, a crypto analyst, has highlighted the potential reversal chances in Bitcoin. The analyst shares Bitcoin on-chain trader realized profit and loss margin for a reversal prediction.

Since 2022, the buying opportunities have occurred when the trader realized the loss margin hits -12%. Currently, it is at -8.25%, which signals more room for a pullback before a bullish turnaround.

Whales and Shark Pump The Bearish Trend

Based on the recent tweet by Santiment, more than 10 Bitcoin wallets have collectively dumped 6,813 BTC in the past week. This correlates with the recent price fall of nearly 20%.

Over the long term, the Bitcoin price is driven by the whale and shark’s behavior. Specifically, the wallets that contain more than 10 Bitcoin.

Due to this massive dump by key stakeholders, Bitcoin is likely to experience a steeper correction ahead. As per Santiment, this is the largest drop from whales and sharks collectively since last July.

Furthermore, the increased optimism in the crypto market of a bullish comeback by retail traders has generally led to a prolonged correction. This is based on the recent Santiment post, which highlights the social media mentions of buy vs. sell calls.

Traders believing in a quick rally often see the price correcting back down. This has happened consistently over the past three months, where the retail trader sentiment has been completely opposite to the upcoming price trend in Bitcoin.

Will Crypto Market Crash Plunge Bitcoin to $80k?

As per the daily chart, the BTC price trend reveals a breakdown of a local support trendline. This has breached the S1 pivot support level at $91,265.

Bitcoin Crypto Price Chart

Bitcoin Crypto Price Chart

Currently, the lower price rejection in the previous intraday candle has driven a short-term recovery to $86,000 levels. The fresh green candle, after four consecutive bearish candles, forms a potential bullish-harami pattern.

However, if the BTC price finds closing under the $84,000 mark, the downtrend is expected to continue to the S2 support level at $80,000. On the bullish front, the immediate resistance for Bitcoin remains the $90,000 psychological resistance, followed by the S1 support-turned-resistance level at $91,265.

Hence, based on the recent posts by Santiment and a few analysts, the short-term recovery in Bitcoin comes as a short relief and could witness a steeper correction. Based on price analysis, this puts the short-term price target for Bitcoin at $80,000.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

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Vishal Dixit
Author Vishal Dixit

Vishal, a Bachelor of Science graduate, began his journey in the crypto space during the 2021 bull run and has since navigated the subsequent market winter. With a strong technical background, he is dedicated to delivering insightful articles rich in technical details, empowering readers to make well-informed decisions.

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