Bitcoin recovered from a decline to $59.1k, defended the $60,000 level and climbed to a local high of $64,000. Nevertheless, market conditions remained volatile.
At the time of writing, BTC was trading at $63,058, having risen 2.03% in the past 24 hours. Trading volume rose 40% to $36 billion over the same period, indicating renewed market participation.
Why did THIS Bitcoin whale sell so quickly?
Like Bitcoin [BTC] hovered around $60,000, whale activity increased. The Exchange Whale Ratio climbed to a two-week high of 0.6.
An increased Exchange Whale Ratio suggested that large holders were accounting for a growing share of currency deposits. At the same time, some whales appeared to benefit from the recent sell-off.
According to Look at chainone Bitcoin whale bought 1,656 BTC worth $98.93 million at an average price of $59,734.
After the purchase, selling pressure subsided and BTC regained the $60,000 level. When the price recovered towards $64,000, the whale moved the assets to Binance and locked in the profits.
The transaction generated approximately $3.5 million in profits within two days.
This move underlined the cautious sentiment still present in the market. Rather than endure the uncertainty, some traders seemed willing to quickly secure their profits.
Such behavior can create additional resistance during recovery efforts, especially when sellers emerge after modest gains.
Can Dip Buyers Absorb Whale Sales?
Despite the attempted recovery, with slight gains on the price charts, the downward momentum remains strong. As whales are sold, they continue to build this momentum.
In fact, Bitcoin’s Trend Momentum has remained negative for three consecutive weeks. On June 8, the metric fell deeper into negative territory, reaching -20.
In the negative zone, this metric suggests that sellers have complete control over the market. At these levels, this indicates the likelihood of trend continuation.
So if sellers, especially whales, continue to exit the market, we could see another drop towards $60,000.
Although whales are being sold, it appears that small-scale traders are buying the dip. Looking at Exchange NetFlow, this metric has remained negative over the past four days.
A negative NetFlow suggests that buyers are also very active in the market. So if these small-scale buyers hold on, they could absorb the pressure from the whales and give Bitcoin a lifeline.
Under such circumstances, we could see BTC recover $65,000 and target $70,000 in the short to medium term.
Final summary
- A Bitcoin whale bought 1,656 BTC for almost $59.7k and exited the market two days later with an estimated profit of $3.5 million.
- Bitcoin recovered from a drop below $60,000 and briefly reached $64,000, but Trend Momentum remained bearish.