Since returning from $72,000, Bitcoin has experienced strong downside momentum, falling to a low of $68,110. At the time of writing, Bitcoin [BTC] trading at $68,705, down 2.93% on the daily charts, reflecting prevailing market risk.
The price drop caused BTC to fall below its short-term moving averages, 20-day and 50-day EMAs, indicating strong downward pressure.
Bitcoin Whale adds 340 BTC worth $23 million
Bitcoin’s drop below $70,000 encouraged new investors, especially whales, to jump back into the market and accumulate.
According to Onchain lenspulled a newly created wallet 340 BTC worth $23.14 million from Binance. When a whale accumulates during a period of weakness, it usually shows optimism about the market. On the futures side, whales are also eyeing a market recovery after the recent skid. According to Look at chaina whale that went from short to long on BTC.
The whale opened a 40x long on 439.92 BTC worth $30.23 million. This shift from shorts to longs indicated bullish sentiment, with the whales making more gains as the market recovered.
In addition to these two whales, wealthy investors have been accumulating aggressively, according to Checkonchain, with MegaWhales and Sharks increasing the buying pressure.
MegaWhales Exchange Balance Change rose to 20.7k BTC at the time of writing, while Sharks Balances rose to 60.9k BTC. Such a jump showed a renewed accumulation of the group, reflecting a shift in market sentiment.
Historically, continued capital flows from large buyers have strengthened the market, positioning it for a potential recovery.
Can Demand Boost BTC?
Although whales have shown greater determination to persevere despite prevailing market conditions, their demand remains insufficient. In fact, the trend has continued to weaken, indicating intense downward pressure from other market participants.
Looking at the MACD, the momentum indicator has remained in negative territory and stood at -162 at the time of writing. When the MACD is negative, it indicates that selling pressure is significantly greater than buying pressure.
Often, a prolonged stay in this zone has further weakened the market, setting the stage for continued price declines. Therefore, if prevailing market conditions persist despite whale buying, BTC is likely to see a continued decline.
As such, BTC could break the USD 67,500 support and drop towards USD 65,000, which previously acted as support. However, if the market interprets whale buying activity positively and it is supported by favorable external conditions, BTC could hold.
A positive reaction will see BTC successfully defend $70,034, laying the groundwork for a potential jump towards $71,885 in the near term.
Final summary
- Bitcoin whale activity increases as a whale buys 340 BTC worth $23.14 million, while another goes long with 40x leverage.
- BTC is still experiencing downside volatility and falling below the 20 and 50 day moving averages.