Whales retreat, the market trembles – Is Bitcoin preparing for a major price action?

Bitcoin has experienced the strongest long term liquidation in five years, wiping out $211 million in leveraged positions on Binance. According to CryptoBusy, this mass liquidation is a decisive reset, removing over-leveraged traders and preparing for cleaner price action. This event occurred as Bitcoin hovered near $96,000, down from a high of over $104,000 in early June.

The write-off reflects the strong volatility of the market. Bitcoin has traded between $90,000 and $104,000 in recent weeks, with major liquidations in sharp corrections. Notably, similar liquidations of over $200 million occurred during the 2021 correction period. At the time, Bitcoin had fallen from an all-time high of $69,000 to $15,500 by the end of 2022. Leverage Cycle and Whale Behavior High leverage remains the main driver of volatility. CryptoQuant data shows that the liquidation volume has a close correlation with the speed and scale of price volatility. In the bear market of 2022, spikes fluctuated between 25–75 million dollars in Bitcoin traded in the range of 15,000 to 25,000 dollars for several months before recovering. In addition, Bitcoin reached a price of 44,000 dollars from the end of 2022 to 2023. After that, the liquidation eased, indicating a calm sentiment in the market. However, the price surge in 2024 brought a frenzy in volatility. Bitcoin skyrocketed from 44,000 dollars to over 104,000 dollars, with peak liquidations once again exceeding 50 million dollars. Meanwhile, the Glassnode data shared by analyst Ali shows a change among the largest Bitcoin holdings. Around May 26, the number of addresses holding more than 1,000 Bitcoin reached a high of 2,114. This figure has fallen to 2,094 on June 11, indicating a decrease of 20 high-value addresses.

Therefore, this change indicates that institutions are withdrawing funds or changing their strategic positions. There was also price volatility ranging from $96,000 to $112,000 throughout May to June. However, most high-value wallets remain unchanged, indicating sustained confidence.

Moreover, the volatility in whale addresses often reflects the accumulation and distribution phases. Even a change of 20 addresses can be associated with billions of dollars in BTC. These movements provide valuable insights into the broader market sentiment.