Bitcoin has retreated from last week’s record high above $124,000, slipping by over 8% in recent days. At the time of writing, the cryptocurrency trades around $113,867, reflecting a 6.3% decline over the past seven days.
According to CryptoQuant contributor Arab Chain, these movements appear to be deliberate, with whales strategically distributing holdings near resistance levels.
Arab Chain’s analysis highlights that Bitcoin’s recent dip to levels near $112,500 coincided with an increase in whale inflows to Binance. These deposits were not massive, singular transfers exceeding 10,000 BTC, but rather repeated transactions over several days, creating what the analyst described as a “coordinated distribution pattern.”
The data shows that each rebound attempt by Bitcoin is met with additional whale deposits to exchanges, reinforcing selling momentum. If this trend continues without a significant pickup in buying activity, Arab Chain warned that Bitcoin could face further downside, potentially testing the $110,000 support zone.
While whale activity has been the focus of near-term market analysis, other perspectives suggest a more layered view of Bitcoin’s position.
However, these flows alone do not always determine immediate price direction. Instead, IT Tech emphasized the importance of monitoring ETF inflows, spot cumulative volume delta (CVD), and exchange premiums, such as those on Coinbase, to gain a clearer understanding of market sentiment.
The interaction of these factors will likely determine whether Bitcoin stabilizes above current levels or moves toward a deeper correction.
Featured image created with DALL-E, Chart from TradingView
