The transactions involved two amounts: $8.10 million and $80.88 million. When significant financial entities secure profits, it often leads to broader market distribution.
In addition to Jump Crypto, an enigmatic trader known as a whale has been offloading Bitcoin since July 19. According to Lookonchain’s data, this entity has sold 2,700 $BTC worth around $211.8 million, bringing their total sales over three days to 7,700 $BTC valued at approximately $576.6 million.
Together, Jump Crypto and the whale have contributed to over $300 million in selling pressure on $BTC.
This selling wave led to liquidations exceeding $647 million, primarily affecting Bitcoin. The liquidations spiked after $BTC prices dipped to $77,000.
As a result of these liquidations, Bitcoin lost roughly 2.5% of its recently gained market cap, affecting Ethereum [ETH], Solana [SOL], and Ripple [XRP] as well.
Nevertheless, the cryptocurrency market appears to be holding firm, suggesting that this decline could simply be a brief correction. But what factors indicate a potential correction on the horizon?
Short Timeframes Suggest an Imminent Correction
The surge past $79,500 has pushed Bitcoin to its highest overbought status since November 2024. The Relative Strength Index (RSI) climbed to 86 but has since retracted to 80, reflecting a decrease in buying momentum.
Moreover, substantial sell orders have built up between the $79K and $80K range, exceeding $92 million on Binance. Large whale transactions are also positioned between $74K and $76K.
These elements strengthen the case for a potential Bitcoin correction, although confirmation remains pending.
From a technical perspective, Bitcoin has lost its position on the 9 and 26 Simple Moving Averages (SMAs) on the hourly chart. The MACD indicator has turned negative as $BTC falls below $77K.
However, the price still hovers above the 50 SMA on the same chart, which remains a bullish sign unless the recent 30% rally is entirely reversed.
Final Insights
- Jump Crypto offloaded $89 million in $BTC, while a whale sold $211 million in $BTC, leading to over $649 million in long liquidations.
- A significant sell wall has formed between $79K and $80K for Bitcoin, indicating a possible upcoming correction.