Since falling below $80,000, Bitcoin has traded within a declining channel, reaching a low of $74,000 before staging a slight recovery.
At the time of writing, Bitcoin was trading at $75,882, down 1.65% from the daily charts. The continued decline saw BTC fall below both the EMA and MA by $77,000 and $76,000 respectively, reflecting strong downward pressure.
Bitcoin Whale bought $66 million worth of BTC
With Bitcoin [BTC] under intense downward pressure, some whales have taken the opportunity to accumulate at a discount.
According to Onchain lensa whale bought 873.29 BTC worth $66.24 million from OKX. With the latest purchase, the wallet now contains 881 BTC, worth approximately $66.73 million.
The purchase of the whale despite the market conditions indicates confidence in the market and the expectation of a new increase. In fact, it seems like most of the active whales on the market feel the same way and have significantly reduced sales activity.
Bitcoin’s Exchange Whale Ratio fell to a two-week low of 0.511. A low Whale Exchange Ratio suggests that whale inflows have historically decreased, which is a bullish signal for BTC.
However, why is BTC struggling?
Despite reduced selling activity among whales, BTC has struggled significantly. While wealthy investors are not selling, other market participants remain extremely active on the sell side.
This is because the Exchange Supply Ratio has continued to rise, reaching a monthly high of 0.133. When ESR jumps to such levels, it suggests that sellers are overly active in the market.
In this case, small-scale investors reduced market exposure during this period of weakness. As a result, momentum has continually weakened.
Is the demand for whales sufficient?
Although whales are buying, other market participants are also selling. The demand for whales has therefore not been able to meet the pressure from other market participants.
Looking at the Bitcoin MACD+RSI indicator, it suggests that the bullish momentum has continued to fade, while the bearish trend has strengthened.
With a MACD at -385 and a histogram at -418, this indicates a bearish expansion. The downward pressure therefore remains extremely high compared to the upward pressure.
This indicates that the whales’ attempt to absorb the pressure has failed, and their demand is still insufficient to go any further.
Therefore, for a trend reversal, the market needs more buy-side activity. This allows demand to absorb the pressure and provide a daily close above $77,839.
However, if prevailing market conditions persist, we could see another decline below $74,000 towards $73,700.
Final summary
- A Bitcoin whale bought 873.29 BTC worth $66.24 million, increasing its holdings 881 Bitcoin.
- Bitcoin [BTC] faces strong bearish pressure and could fall below $74k again if market conditions persist.