Bitcoin has experienced strong downward momentum since rebounding from $72,000 and falling to $68,110. At press time, Bitcoin (BTC) was trading at $68,705, down 2.93% on the daily charts, reflecting current market risk.
The price decline saw BTC fall below the short-term Moving Averages, 20- and 50-day EMAs, indicating strong downward pressure.
Bitcoin whale added 340 BTC worth $23 million
Bitcoin’s fall below $70,000 encouraged new investors, especially whales, to return to the market to accumulate savings.
Accordingly Lens On Chaina newly created wallet withdrew 340 Bitcoin It is valued at $23.14 million from Binance. Generally, when a whale accumulates during a period of weakness, it shows optimism in the market. On the futures side, whales are also waiting for the market to recover after the recent decline. Accordingly lookonchainA whale went from short to long on BTC.
Whale opened 40x long at 439.92 BTC, worth $30.23 million. The shift from short positions to long positions suggests a bullish trend, with whales making more gains as the market recovers.
Beyond these two whales, high-net-worth investors are accumulating aggressively, while MegaWhales and Sharks are increasing buying pressure, according to Checkonchain.
MegaWhales Exchange Balance Change increased to 20.7 thousand BTC as of the time of writing, while Sharks Balances increased to 60.9 thousand BTC. Such a jump indicated renewed savings from the group, reflecting a shift in market sentiment.
Historically, sustained capital flows from large buyers have strengthened the market, positioning it for a potential recovery.
Can demand drive BTC higher?
Although whales are showing greater determination to hold on despite current market conditions, their demand is still inadequate. In fact, the fact that the trend continues to weaken indicates intense downward pressure from other market participants.
Looking at the MACD, the momentum indicator remained in the negative zone and was at -162 at the time of writing. A negative MACD indicates that selling pressure has significantly exceeded buying pressure.
Oftentimes, staying in this zone for a long time acts as a prelude to continued price declines, further weakening the market. Therefore, if current market conditions continue despite whale buying, BTC is likely to see a sustained decline.
In this case, BTC could surpass the $67,500 support and drop to $65,000, which previously served as support. However, if the market interprets whale buying activity positively and is supported by positive external conditions, BTC can hold on.
A positive reaction would see BTC successfully defend $70,034, paving the way for a potential bounce towards $71,885 in the short term.
Final Summary
- Bitcoin whale activity intensifies as a whale buys Another trades 340 BTC worth $23.14 million with 40x leverage.
- BTC is still experiencing downside volatility and falling below the 20 and 50-day moving averages.
