Bitcoin faces correction risk as major whale sells $576.6 million near $80,000 peak

BTC rallies, then meets resistance near $80,000

In one of its strongest moves of 2024, Bitcoin climbed from the mid-$60,000 range to a high of $79,463 on Friday. Data from TradingView shows the weekly gain reached 24.27%, but the push was quickly capped as sellers absorbed demand near the $80,000 resistance level.

Lookonchain, an on-chain analytics platform, reported that one large Bitcoin holder sold another 2,700 BTC worth about $211.8 million on Saturday. That same wallet disposed of a total of 7,700 BTC, valued at $576.6 million, over a span of three days.

One unidentified address sold an impressive 7,700 BTC in just three days, including a single 2,700 BTC transaction worth $211.8 million, as tracked by on-chain data specialists at Lookonchain.

Separate reports flagged additional large sales, such as a wallet ending in bc1qqt which sold 550 BTC for $39.43 million, securing an estimated $4.5 million profit. These actions by so-called whales increased the supply near a critical resistance zone but do not by themselves confirm the start of a market correction.

Large-scale selling by whales can create pressure when order books are thin, especially following rapid upward moves that trigger the liquidation of short positions. Over $4.3 billion in crypto shorts were closed out from Wednesday to Friday, driving further price acceleration before selling cooled the market.

ETF inflows and macro factors cushion the retreat

Institutional demand remains evident. Spot Bitcoin exchange-traded funds in the United States attracted $606.3 million in new flows on Thursday and $1.61 billion over the week, suggesting professional investors participated in the surge.

In macro developments, the US Treasury announced plans to double its long-dated bond buybacks to at least $4 billion per operation. Lower yields and dollar weakness have historically boosted demand for risk assets such as Bitcoin. Market observers suggest continued ETF inflows may help absorb increased whale supply in the short term, but a significant drop in demand could still spark further declines if Bitcoin fails to hold the $75,000 to $76,000 support range.

Momentum and sentiment signal caution

Technical indicators now show overextended momentum. Bitcoin’s four-hour Relative Strength Index (RSI) soared to 87 during Friday’s rally, a record level for this period, while the Money Flow Index hit 100—levels that signal overbought conditions.

RSI, a measure of price speed and change, typically flags values above 70 as overbought, warning of potential pullbacks. However, during strong market trends, this reading can remain elevated while prices continue higher.

The Crypto Fear and Greed Index also shifted sharply, rising from 34 (fear) last week to 71 (greed) today. This 37-point movement shows how quickly investor sentiment turned more bullish, but also highlights the risk of a sudden reversal if flows disappoint.

Bitcoin’s rapid surge left both technical momentum and market sentiment at extreme levels, with the Fear and Greed Index swinging from 34 (fear) to 71 (greed) in one week.

Market participants say ongoing institutional demand is key to holding support above $75,000. Should buying momentum drop or large holders continue to sell, a deeper correction toward the $70,000–$72,000 range could follow.

Markets also noted the influence of well-known media figures. Commentator Jim Cramer recently recommended Bitcoin over Bitmine stock, triggering renewed banter among retail investors about the “inverse Cramer” meme. However, no market participants treat such comments as trading signals.