Bitcoin Whale Activity Drops 45.3% as Market Faces Volatility

Bitcoin (BTC) has been consolidating around the $107,000 mark, but recent on-chain data suggests a potential price move may be on the horizon. The number of large Bitcoin transactions exceeding $100,000 has decreased by 45.3% over the past month. This decline, from a peak of around 30,840 transactions on May 22 to just 16,860 by June 29, indicates a significant reduction in activity from whales and institutions. This drop in large transactions often signals weakening confidence and thinning liquidity, which could increase the risk of Bitcoin slipping below the key $100,000 support level. If large-scale buying continues to wane, the market could face deeper volatility unless new demand emerges.

Broader cryptocurrency market trends also reflect this caution. Capital inflows into cryptocurrencies have declined by more than $20 billion, suggesting a shift in investor sentiment. The net position change in realized value, a measure of capital entering or exiting the market, dropped from nearly $55 billion in late May to $34 billion by June 28. This drawdown highlights a slowdown in momentum across major assets, including Bitcoin and Ethereum (ETH), both of which had experienced steady accumulation earlier in the second quarter.

Currently, Bitcoin’s key support level is at $105,000. Holding above this level is critical for any attempt to reclaim $110,000 and push toward new all-time highs. As of the latest data, BTC was trading at $106,972, down 0.6% on the day and 0.3% for the week. Technically, Bitcoin remains in a bullish posture, trading above both its 50-day simple moving average ($105,970) and 200-day SMA ($87,717), a sign of strength. The 14-day RSI stands at 58.77, indicating that momentum remains intact without signaling overbought conditions. Overall, Bitcoin’s setup appears constructive, with key moving averages providing support and technical indicators still favoring the bulls.