Bitcoin is at risk of a deeper correction to fill the CME futures gap down to $114,000, fueled by profit-taking from whales . After starting the week with new all-time highs, Bitcoin reverted to negative returns as its price dropped 5% to $116,850 on Tuesday . The price rejection occurred at $120,000, the highest daily-candle close ever, and now a key level for traders .
On the four-hour chart, BTC is currently trading below the 20-period simple moving average (SMA), and a potential close below the key indicator might trigger further downside . Profit-taking by Bitcoin whales pushes down price . Bitcoin could see increased market volatility due to increased whale activity on Binance, according to a recent analysis by CryptoQuant . According to the firm, the Binance Whale Activity Score has seen a sharp rise following Bitcoin's all-time highs of $122,000 .
The Binance Whales Activity Score tracks the behavior of large Bitcoin holders (whales) on Binance, the world's largest exchange . A high score indicates that whales are driving a substantial portion of activity on Binance . Data shows that whales deposited approximately 1,800 BTC onto Binance on Monday . The Exchange Inflow by Value Bands reveals the scale of these transfers, with transactions over $1 million accounting for more than 35% of the total Bitcoin inflows to the exchange .
While some analysts predict a potential correction, others remain bullish on Bitcoin. Bitwise CIO Matt Hougan believes Bitcoin could reach $200,000 by year-end . 10x Research has set targets of $140,000 to $160,000 for 2025, while other forecasts suggest Bitcoin could reach $130,000 to $150,000 by year-end .
Additionally, a significant Bitcoin holder deposited 1,000 BTC onto the Binance exchange, realizing a profit of $68.8 million . The whale's initial withdrawal from Binance occurred at an average price of around $84,861 per BTC . Given the current market conditions, this move has led to a substantial profit of $68.8 million .
Traders and investors are closely monitoring these whale movements, as they can offer insights into potential future market movements. While the possibility of a price drop to $114,000 is a possibility, the overall long-term outlook for Bitcoin remains largely bullish .