Crypto analytics firm Santiment has observed a surge in massive Bitcoin transactions during March, with the five largest transactions of 2023 occurring this month. This trend is believed to result from profit-taking and concerns about a potential top, following Bitcoin’s approximately 70% rebound.

The most recent notable transaction involved a transfer of 20,000 BTC, which was briefly sent to an address before being moved to multiple other addresses. Santiment noted a significant influx of coins moving back onto exchanges between March 13th and 21st, as Bitcoin’s price rose sharply to $28,000. However, as prices began to range between $27,000 and $29,000, supply moved off exchanges again.

Santiment’s analysis shows that the number of active sharks and whales (in yellow) and more dormant whales/exchange addresses (in red) continues rising in March. However, the yellow line — considered the most valuable — has been increasing much slower than when prices bottomed out in November and December.

Source: Santiment

The picture appears more concerning when examining the percentage of Bitcoin supply held by the same shark/whale category. After a consistent accumulation pattern until late January, profit-taking has gradually come into play.

Source: Santiment

Given the sizeable transactions taking place in March and the continuing slide in the 10-10k BTC address tier, Santiment suggests there are legitimate caution flags for those hoping to see Bitcoin surge to $35,000 and beyond. The current market dynamics indicate that investors should tread carefully and monitor the movements of large Bitcoin holders for potential market shifts.