Recently, cryptocurrency analysis platform Lookonchain reported activity of Bitcoin (BTC) and Ethereum (ETH) whales amid the ongoing market decline. These whales appear to have taken advantage of the recent drop in crypto prices to strengthen their holdings.
According to Lookonchain, a newly established wallet withdrew 700 BTC, worth about $29.36 million, from the Binance exchange during the market dip.
These BTCs were purchased at an average price of $41,948 each. It is worth noting that, according to the analyst, such a move during a market downturn demonstrates bullish sentiment about BTC’s future.
It looks like a whale is buying $BTC!
During the recent market downturn, a new wallet fetched $700 $BTC($29.36 million) from #Binance at an average price of $41,948.https://t.co/5kE1l0mJlo pic.twitter.com/Fj1thu4C6x
— Lookonchain (@lookonchain) January 19, 2024
Ethereum whales join the fray
The story of strategic accumulation is not limited to Bitcoin. Lookonchain’s subsequent tweet highlighted similar activity in the Ethereum market.
A whale took advantage of the dropped Ethereum prices and bought 3,600 ETH, worth approximately $8.9 million. Lookonchain highlighted that this investor’s history of buying ETH at lower prices and selling at higher valuations has resulted in significant profits, estimated at approximately $25.8 million.
After the price of $ETH dropped today, this smart whale bought 3,600 $ETH($8.9 million) back at a lower price 5 hours ago.
This whale is very good at buying $ETH at low prices and sales $ETH on highlights.
Profits currently stand at ~$25.8 million!https://t.co/UzXbheftr1 pic.twitter.com/DannZzsQVk
— Lookonchain (@lookonchain) January 19, 2024
These whale moves are worth noting, especially given the increasing bearish sentiment in the cryptocurrency markets. For example, Ethereum has seen a decline of 1.9% in the past 24 hours and a decline of 7.8% in the past week.
The asset is currently trading at around $2,475. Bitcoin is experiencing a similar trend, down nearly 3% in the past 24 hours and down 10% in the past week, bringing its price to $40,819 at the time of writing.
This market downturn is also reflected in the trading volume of the asset. Bitcoin’s daily trading volume fell from more than $40 billion last Friday to about $26 billion.
Bitcoin market analysis and future predictions
In light of these developments, renowned crypto analyst Jacob Canfield has warned that Bitcoin could face further corrections in the near term.
Canfield notes that Bitcoin’s upcoming halving could play a crucial role in rebalancing market dynamics, potentially tipping the balance towards supply demand. However, his analysis of Bitcoin’s 4-hour chart points to the formation of a trend that has historically been an indicator of negative price movements in the short to medium term.
For Bitcoin, the critical levels include $48,700, marked by the 61.8% Fibonacci retracement, weekly resistance, and a significant support level at $38,700. Earlier this month, Bitcoin traded in the $48,700 zone before retreating.
Canfield warns that after a tap at the 61.8% level, Bitcoin often experiences an 18-22% sell-off, potentially pushing it back towards the $38,700 support level.
#Bitcoin update – If you’ve been following me for a while, you know my local top $BTC was $48.7k (according to my playbook posts)
The question everyone is asking now is ‘where do we go from here?’
The current story is that the ETF approval has freed up the GBTC investors… pic.twitter.com/MayIZp5vEY
— Jacob Canfield (@JacobCanfield) January 18, 2024
Featured image from Unsplash, chart from TradingView
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