Bitcoin saw its price briefly surpass the $126,000 mark before experiencing a significant correction of 4%. This decline was triggered by profit-taking activities from investors and unusual movements within dormant Bitcoin wallets. J. Martin, a CryptoQuant analyst, observed large wallet transfers exceeding $3.9 billion, the largest such transfer in the year so far, which may indicate short-term bearish pressure. While this has impacted market volatility with over $620 million in crypto liquidations, data suggests potential for a rebound as active demand from institutions and ETFs could absorb some of the excess supply. 3 to 5-year inactive wallets saw significant activity on Tuesday, with a total transfer of roughly 32,322 BTC. While this is not unusual for Bitcoin cycles, it can create short-term bearish pressure due to increased circulating supply potentially impacting new market entrants. This dynamic contrasts with the stable behavior of active long-term holders who are cashing in on profits. However, data suggests that bulls are regaining their footing as long liquidation ratios have narrowed, indicating a potential shift back towards bullish sentiment.