- Bitcoin whales sold 500K BTC, pushing holdings to the lowest level since 2019.
- Market volatility surged as ETF inflows failed to offset heavy selling pressure.
- Key support levels at $92K and $71K will determine Bitcoin’s next price move.
Bitcoin whales have unloaded over 500,000 BTC since July 2024, removing $43 billion from major wallets. Holdings among large investors have dropped to the lowest level in five years. Long-term holders took profits near six-figure prices, adding more pressure to the market. ETF inflows have failed to absorb the selling, leaving buyers unable to counter the supply flood. Increased uncertainty has shaken confidence, pushing Bitcoin into extreme volatility.
Heavy Selling Sparks Market Chaos
Bitcoin’s realized volatility has surged past 80%, showing how unstable prices have become. Investors across all wallet sizes have contributed to this correction, adding to the sell-side pressure. Since mid-January, heavy liquidations have dragged Bitcoin below $86,000, testing critical support zones.
On-chain data reveals that 150,000 BTC worth $14.2 billion moved between February 26 and March 3. Large buyers may be reducing exposure, fearing more downside. The crypto market briefly surged after news of a potential US Strategic Digital Asset Reserve. Excitement faded quickly, triggering a sharp sell-off that erased those gains.
Key Support Levels Will Decide Bitcoin’s Next Move
Bitcoin has shown resilience due to strong liquidity, preventing extreme price swings. Ethereum and Solana have suffered deeper losses, each dropping over 50% from their highs. A rising US dollar has added more stress, draining liquidity from riskier assets.
Bitcoin has declined 28% from the peak, following historical correction patterns. Previous cycles have seen drops over 30%, with some exceeding 50%. Short-term holders face heavy losses, making it difficult for new investors to enter.
Critical support rests at $92,000 and $71,000. Buyers must defend these levels to prevent a deeper sell-off. If demand weakens, another wave of capitulation may follow. The coming weeks will reveal whether strong hands step in or panic takes over.
