Large-scale Bitcoin holders, known as whales, have recently demonstrated significant accumulation, purchasing over 10,000 BTC in the past 24 hours. This activity comes amidst a downward trend for the cryptocurrency, with Bitcoin’s price falling by nearly 7% over the past week and trading volume reaching high levels.
Analyst Ali Martinez highlights that this influx of purchases follows a month-long decline in whale holdings. This surge in buying activity coincides with Bitcoin hovering near critical support levels. As whales have been sending fewer coins to exchanges (as indicated by the Exchange Whale Ratio), it suggests they may be holding or acquiring rather than selling.
A drop in short-term holder profit and loss margin (P&L) also points towards a possible recovery. This metric has historically shown positive correlation with Bitcoin’s price rebound when losses fall below -12%. With the P&L currently approaching this threshold, many are watching for any potential bounce.
Despite these signs of potential support, uncertainty remains. Analysts differ on the market outlook. Some believe in a potential reversal, citing historic trends and a key long-term support level being tested. Other analysts predict further downward movement, with some suggesting $83,610 as a crucial level to watch.
Global liquidity conditions may also play a role in Bitcoin’s future trajectory. Some experts suggest that a surge in global liquidity could provide more favorable conditions for cryptocurrencies. Meanwhile, the continued weakening of Bitcoin’s market structure and recent downtrend has created a challenging environment.
The article “10,000 BTC Bought by Whales Overnight: What Does it Mean for Bitcoin’s Price?” was originally published on CryptoPotato.