- Babylon protocol saw a sharp 14,929 BTC unstake worth $1.26B, pushing staked totals down to 31,701 BTC.
- Bitcoin dropped to retest the 20-day EMA support at $83,250 after the large unstake.
- Narrowing Bollinger Bands and RSI at 51 points to neutral momentum with rising volatility potential.
A total of 14,929 BTC, valued at around $1.26 billion, was unstaked from the decentralized staking platform Babylon on Wednesday. The event occurred at approximately 10:30 AM UTC, according to data from Lookonchain. The transaction involved the distribution of funds across multiple addresses, suggesting possible institutional-level activity.
The significant outflow followed an earlier withdrawal of 256 BTC on April 4, reported by Bitfeed developer Mononaut. That transaction alone had a noticeable impact on blockspace utilization. These movements come shortly after Babylon concluded a $600 million airdrop of its native token, BABY, which was distributed to early users of the protocol.
Following the recent withdrawal, the total amount of Bitcoin staked on Babylon has declined sharply. BlockTempo data confirms that Babylon’s staked BTC dropped to 31,701 BTC after the large transaction. The size and timing of the move point to a possible strategic shift toward liquidity or a rotation in market positioning.
Bitcoin Price Reacts to the Withdrawal
The Bitcoin price reacted promptly after the large unstake. BTC fell from a local high of $85,428.28 and moved down to test the 20-day Exponential Moving Average (EMA) at $83,250. This level has held as support in recent sessions. Analysts view this as a key technical area for market direction.
The market shows signs of upcoming unpredictable fluctuations in the next period. The tightening of Bollinger Bands indicates that a price movement either upwards or downwards might be forthcoming. Both the lower Bollinger Band marks $77,948 and the upper Bollinger Band points to $87,137. Immediate resistance lies around $84,091.
The Relative Strength Index (RSI) currently holds a value of 51 which implies a market condition ranging from neutral to moderately bullish behavior. This situation allows BTC to potentially move in any direction because it stays outside overbought zones based on current market conditions.
