No Sell-Off Needed? Bitcoin Whales Buy Big While Old Holders Stay Put
Despite the bearish sentiment surrounding Bitcoin (BTC), the largest cryptocurrency by market cap, signs suggest this trend may soon change. On September 17, 2024, crypto analytics firm CryptoQuant shared insights on X (formerly Twitter) revealing that new whales and Binance traders are seizing the opportunity to buy the dip.
Whales Purchasing the Dip
CryptoQuant’s post highlighted that older whales are maintaining their BTC holdings, suggesting market stability and the potential for price growth in the near future.
Recent transactions indicate strong interest from these whales in acquiring Bitcoin. On September 16, 2024, First Digital Lab transferred nearly $80 million in FDUSD to Binance, likely to purchase Bitcoin. Historically, such moves have led to significant price rallies; last month, a similar transfer of $145.5 million resulted in a 6.7% increase in BTC from $60,000 to $64,000.
Current Price Momentum
As of now, Bitcoin is trading around $57,800, having experienced a decline of over 3% in the last 24 hours. However, trading volume surged by 125% during this period, indicating heightened investor participation despite the price drop.
Technical Analysis and Key Levels
From a technical perspective, BTC is at a critical support level of $57,500 and is trading below the 200 Exponential Moving Average (EMA) on the daily chart. This EMA serves as an indicator of whether an asset is in an uptrend or downtrend.
If Bitcoin closes its daily candle below the $57,000 mark, there’s a strong possibility it could decline another 5% to around $54,000 in the coming days. Additionally, a 2% drop in BTC’s open interest suggests traders are either liquidating their positions or are hesitant to enter new ones due to market volatility.
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