Bitcoin Whales do the Bottom Fishing During Recent Price Correction
After facing strong selling pressure over the last weekend, Bitcoin is back above the $40,000 level once again. As of press time, Bitcoin is trading 4% up at a price of $40,536 and a market cap of $770 billion.
As the BTC price slipped under $39,000 late Sunday, it seems that whales turned active to buy the dips. citing data from on-chain platform Santiment, Ai Martinez reports:
Bitcoin whales took advantage of the recent downswing to buy 40,000 $BTC, worth $1.6 billion! Data from @santimentfeed shows that addresses with 10,000 to 100,000 BTC increased their holdings by nearly 2%, while prices dropped from $39,900 to $38,200.
On the other hand, it seems that the short-term BTC holders have been losing patience during the recent price consolidation. Data from IntoTheBlock shows:
Bitcoin short-term holders continue to decrease their positions. These traders – addresses holding <1 month, tend to follow the price action, and in many cases sell at a loss. The balance held by traders is at the lowest value since Jan 18, as they now hold 1.49m BTC.
What’s Ahead for Bitcoin?
Bitcoin has been showing major price movements in the range of $35,000-$45,000. Thus, this could turn out to be just another price jump and nothing decisively can be said at the moment.
However, we have some interesting developments lined up for Bitcoin investors ahead of this week. Australia is set to get its first spot-Bitcoin ETF this week on April 27 which will be listed on the CBOE equities trading exchange. Further as per market estimates, this could see net inflows of $1 billion and above.
Another positive trigger for Bitcoin could be that the illiquid BTC supply has been growing very fast. Citing data from Glassnode, analysts at Blockforce Capital report that a “massive” number of BTC coins have been moving off exchanges. This supply is going “offline” and into the cold storage. In a note, the analysts wrote:
“We have only seen this level of outflow from exchanges four previous times since the start of 2018. Three of those instances correlated with a sharp upward movement in price not too long after.”
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.