Bitcoin Whale Activity Spikes As BTC Price Takes A Dip to $70,000, What’s Next?

Bitcoin price remained under pressure as it traded near $70,000, extending its recent decline. The weakness coincided with a sharp increase in whale activity and continued capital outflows from U.S. spot Bitcoin exchange-traded funds (ETFs).

Market participants are now watching whether BTC can defend current support levels or face a deeper correction toward lower technical targets.

Bitcoin Whale Activity Spikes, but Not Enough

On a short-term timeframe, the Bitcoin whale activity has surged, hitting a 6-week high, as the BTC price took a dive to $70,011 earlier today. As per Santiment data, the Bitcoin network recorded its highest number of transactions worth $100,000 or more since April 22.

According to the analytics firm, the surge in large value transactions suggests increased activity from major holders. Santiment noted that similar spikes in whale transactions have historically coincided with accumulation periods.

But when we look at the multi-year timeframe, the scenario looks concerning. According to Santiment, Bitcoin averaged roughly 1.12 million daily active addresses and nearly 489,000 new wallet creations per day in May 2021. Today, those figures have declined to approximately 624,000 active addresses and 278,000 new wallets daily. It represents a drop of nearly 44%.

These indicators show that Bitcoin is attracting fewer players in comparison to the retail frenzy of 2021. As per Santiment, this decline could be due to the growing adoption of spot Bitcoin ETFs and other institutional investment products.

Santiment also noted that many long-term holders are showing passive participation, while opting to hold instead of transacting frequently. As a result, the Bitcoin network remains highly valuable despite reduced on-chain activity.

BTC Price In A Make-or-Break Situation, $50,000 Coming?

Amid the continuous weakness shown by Bitcoin, experts have started giving lower targets for the BTC price. Market analyst Killa said that with Bitcoin failing to hold above $74,200, the next major support zone is near $70,800. This serves as a critical support for Bitcoin’s short-term price structure.

Killa added that a breakdown below the broader $70,000 area could trigger a deeper capitulation move. It could push the BTC price further lower to $65,000.

Another popular analyst, Altcoin Daily, stated that Bitcoin has broken below a second bear flag pattern. Historically, such a setup has led to a significant BTC price decline.

According to the analysis, the last time a similar setup occurred, Bitcoin fell approximately 30% after breaking down from the pattern. If history were to repeat, a comparable decline from the current channel structure could place Bitcoin near the $50,000 level.

However, Altcoin Daily noted that a retracement to Bitcoin’s 200-week moving average may be a more likely scenario. The long-term indicator is currently positioned near $62,000. It could serve as a key support zone before any extended correction.

Bitcoin ETFs Continue to Bleed

U.S.-listed Bitcoin ETFs have seen major outflows in the past two weeks and more. On June 1, these ETFs clocked the 11 consecutive days of outflows at $484 million, as per data from SoSoValue.

The continued outflows highlight persistent risk aversion among investors, as capital continues to exit Bitcoin investment products. Since May 7, the spot Bitcoin ETFs have been bleeding significantly, with outflows crossing more than $4 billion since then.

Another major fear is defunct crypto exchange Mt. Gox transferring 10,306 Bitcoin, worth approximately $731 million, to a new wallet address. This is the first move from the exchange in nearly two months.

The transaction has sparked renewed speculation that creditor repayments could be approaching. It could potentially induce additional pressure on BTC price, going ahead.