On-chain data reveals that Bitcoin whale transactions have surged after the latest price rally, indicating potential profit-taking activities. The Bitcoin Whale Transaction Count has reached its highest level in over ten weeks.
According to on-chain analytics firm Santiment, Bitcoin whales have significantly increased their activity recently. The “Whale Transaction Count” indicator, which tracks transfers on the BTC blockchain valued at $100,000 or more, suggests heightened movements by these massive holders. When the indicator is high, it signals that whales are actively trading, while a low count implies less engagement from these major players.
Recent data shows a notable spike in whale transactions, with 11,697 transfers occurring in just 24 hours at the peak. This rise marks the highest level since early August, a period that coincided with a price crash, suggesting many of those transactions were likely selling activities. Given the current rally in Bitcoin’s price, the increased Whale Transaction Count could indicate that whales are now taking profits again. Since the spike, Bitcoin’s price has dipped below $67,000, lending credence to this theory.
Santiment also provided data on Bitcoin’s Social Dominance, a metric that measures the share of social media discussions about Bitcoin compared to the top 100 assets in the sector. The Social Dominance has surged to 25.5%, its highest level since late July, reflecting a high level of interest and a potential fear of missing out (FOMO) among traders. Historically, excessive hype around Bitcoin has often preceded market tops.
“Both of these signals are signs that the rally may be on hold due to key stakeholder profit taking and high crowd FOMO,” Santiment observed.
Currently, Bitcoin is trading around $66,900, up more than 9% over the last week. As the price continues to climb, the market will closely watch these indicators to gauge the next moves of Bitcoin whales and the broader investor sentiment.