Here’s Why The Bitcoin Price Crashed After Hitting $125,700 All-Time High

Bitcoin’s wonderful rally to a new all-time high of $125,700 on Sunday was met almost immediately by a sharp ￰0￱ sudden pullback, which is expected given the all-time high, saw Bitcoin break below $123,000 in less than two hours after the new record. Interestingly, on-chain data shows a notable increase in whale activity during and after the all-time high to and from ￰1￱ such example is a massive $200 million Bitcoin transfer into Binance, a move that appears to have been a calculated profit-taking action by a whale ￰2￱ Profit-Taking Contributes To Selling Pressure Shortly after Bitcoin hit its record high, blockchain data first revealed by whale transaction tracker Whale Alert on X shows that a whale address identified as “3NVeX” transferred a total of 1,550 BTC, worth nearly $200 million, to Binance in two separate ￰3￱ first transaction involved the transfer of 800 BTC worth $100 million, followed by another transfer of 750 BTC worth $93.7 ￰4￱ Reading: Bitcoin Price Still On Track To Hit $165,000, JPMorgan Analysts Reveal Timeline The timing of these transfers coincided almost perfectly with the recent price top, and the whale most likely sold into the ￰5￱ the transfers were completed, the wallet held only about 0.1 BTC, meaning the whale had sold off most of their ￰6￱ to data from whale transaction tracker Whale Alert shared on X, the number of large Bitcoin transfers to and from exchanges has increased notably over the past few ￰7￱ multi-million-dollar transactions, each exceeding $10 million, have been spotted moving between private wallets and major trading platforms such as Binance and ￰8￱ notable example is the transfer of 401 BTC worth $50.2 million from an unknown wallet address “1Jip8s” into Coinbase ￰9￱ long after, 401 BTC were sent from an unknown wallet “1E8p4n” into Coinbase Institutional in another separate transaction.

Altogether, the sudden wave of high inflows across multiple platforms paints a clear picture of whales locking in profits after Bitcoin’s all-time ￰10￱ Price Outlook Bitcoin’s price quickly slipped below $123,000 following the whale-triggered selloff, before rebounding to around $122,530. The pullback was relatively modest compared to previous all-time highs, but it nonetheless served as a reminder of how easily large holders can influence price ￰11￱ Reading: Bitcoin Bear Trap Over? Pundit Reveals Where The Market Is At Right Now Despite the brief downturn, the correction may prove healthy for Bitcoin’s ￰12￱ allows overheated momentum to cool off and sets the stage for a more sustainable advance once selling pressure ￰13￱ from Whale Alerts shows cases of millions of dollars worth of BTC also leaving crypto exchanges for private, unknown ￰14￱ the time of writing, Bitcoin is trading at $123,380.

As long as Bitcoin maintains support above $120,000, its long-term outlook remains bullish, and it may as well create a new all-time high before the week runs ￰15￱ also depends on how well Spot Bitcoin ETFs perform this ￰16￱ image from Pixabay, chart from ￰17￱