📉 Bitcoin’s Five-Month Slide Sparks Whale Alarm: Is Another Shock Drop Brewing Below $70K?

After printing five consecutive monthly red candles, Bitcoin is entering one of its most closely watched technical phases in years—and market data suggests the real test may still lie ahead.

Large-holder activity, rising exchange inflows, and a spike in volatility are converging into what analysts describe as a fragile market structure, where demand must quickly return or risk being overwhelmed by supply.

Data tracked by CryptoQuant shows Bitcoin’s Whale Inflow Ratio—a metric measuring how much of exchange inflows come from the 10 largest transactions—has surged to its highest seven-day average in more than two years.

That spike coincided with Bitcoin’s drop below the $70,000 threshold in February, suggesting that large holders are actively sending coins to exchanges, often a precursor to selling.

Much of this activity has flowed into Binance, whose deep liquidity makes it a preferred venue for executing large trades without excessive slippage.

Analyst commentary indicates the behavior is not isolated but part of a broader reassessment among institutional and high-net-worth investors navigating an uncertain macro environment.

On-chain intelligence platforms have traced a notable portion of February’s movements to wallets identified by Arkham as belonging to Garrett Jin, the former CEO of the now-defunct exchange Bitforex.

Jin gained notoriety for successfully shorting the market during October’s crash—and recent wallet behavior suggests continued distribution:

The key unknown now: whether this represents the tail end of a liquidation cycle—or just the beginning.

At the same time, Bitcoin’s Historical Volatility has climbed to its highest level in a year, according to data from Coinglass.

Historical Volatility measures how dramatically prices have moved in the past. Elevated readings don’t predict direction—but they do signal that large, sudden swings are increasingly likely.

When paired with heavy whale inflows during already negative sentiment, analysts say the setup often precedes renewed downside pressure rather than stabilization.

In bullish environments, whale selling can be absorbed by eager buyers, simply transferring coins into stronger hands.
But during uncertain periods, that same activity can trigger cascading declines if demand fails to match supply.

Current conditions show:

According to analysis referenced by BeInCrypto, Bitcoin faces a narrowing window to regain technical stability:

Until one of those levels decisively breaks, Bitcoin may remain locked in a high-tension range defined by liquidity battles between whales and sidelined buyers.

Bitcoin’s current structure reflects more than a routine pullback—it’s a transition phase where:

If fresh demand emerges, this period could mark a classic consolidation before the next expansion.
If it doesn’t, analysts warn the market may face another liquidity-driven shakeout.

For now, Bitcoin isn’t just searching for support—it’s waiting to see who’s willing to absorb the supply.