Since recovering from $72k, Bitcoin has experienced a sharp decline, dropping to $68,110. At press time, Bitcoin (BTC) was trading at $68,705, down 2.93% on the daily chart, showing the riskiness of the market.
The bearish trend saw BTC drop below its lower Moving Averages, 20- and 50-day EMAs, indicating bearish momentum.
Bitcoin whale adds 340 BTC worth $23M
Bitcoin’s drop below $70k encouraged new investors, especially whales, to jump into the market again to accumulate.
According to Onchain lensthe newly created wallet produced 340 BTC $23.14 million from Binance. In general, when a fish accumulates during a period of weakness, it indicates optimism with the market. On the Futures side, whales are also looking at the market’s recovery from the recent decline. According to Lookonchain imagesthe whale turned from short to long on BTC.
The whale opened 40x long at 439.92 BTC worth $30.23 million. This shift from short to long puts people in a positive mood, with whales getting more profit as the market increases.
Beyond the two whales, high-value investors have been piling on the pressure, according to Checkonchain, MegaWhales and Sharks are adding to the buying pressure.
MegaWhales Exchange Balance Change increased to 20.7k BTC at the time of writing, while Shark Balances increased to 60.9k BTC. Such a jump signaled a rally in the group, indicating a change in market sentiment.
In the past, recessions from major buyers have strengthened the market, causing it to rebound.
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Although the whales have shown determination to continue despite the market, their demand remains insufficient. In fact, the trend continues to weaken, meaning that some market participants are under more pressure.
Looking at the MACD, the bullish indicator has remained in negative territory and was at -162 at press time. When the MACD is negative, it indicates that the selling pressure has exceeded the buying pressure.
In general, the long stay in the area has weakened the market, leading to lower prices. Therefore, if the current market conditions continue, despite the buying whales, BTC will see a continuous decline.
Accordingly, BTC may break the support of $67,500 and fall to $65k, which has been there as a support. However, if the market correctly interprets this fish buying activity and is supported by good external factors, BTC can catch on.
A successful move will see BTC successfully defend $70,034, setting the stage for a jump to $71,885 in the short term.
Brief Summary
- Bitcoin’s whaling activity grows, as does buying a whale 340 BTC worth $23.14 million when someone goes long with 40x earnings.
- BTC is still experiencing downward volatility, falling below the 20- and 50-day moving averages.
