Bitcoin whales bought 47,000 BTC in the last 24 hours, worth over $2.7Bn, despite prices tanking towards $56,000. Here’s why crypto whales are buying.
Bitcoin dropping below $60,000 signaled a shift away from a once trend. The fall saw hundreds, if not billions, of leveraged longs liquidated.
With this contraction, BTC price moved to territory last seen in early March. Only then were BTC prices on cue of shooting to new all-time highs with immediate targets at $70,000.
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This time around, however, it is the other way around, and folks are feeling the pain. Nonetheless, it depends on which side of the equation: Speculators have been shaken out while HODLers are looking to double down, buying more on dips.
Here’s Why Bitcoin Whales Are Accumulating On BTC Dips
Despite Bitcoin being under pressure and trading below $60,000, whales are having a field day. Ki Young Ju, the founder of CryptoQuant, noted that following the dip, whales bought over 47,000 BTC in the last 24 hours alone.
Coincidentally, during this time, BTC price found support. Prices recoiled from May 1 lows of $56,500 to move close to the resistance area at $60,000. The influx of fresh capital could explain the sudden stabilization in prices with selling pressure eased.
While impressive, and bulls are looking forward to more inflows, the pseudonymous nature of BTC transactions means it is hard to crack the hands behind this accumulation. All we know is that there was demand when prices dipped.
It notably came when investors of spot Bitcoin ETFs were scrambling to get out, unloading – suggesting buy pressure came from younger investors.
According to Lookonchain data on May 2, all spot Bitcoin ETF issuers in the United States, including GBTC—which is being liquidated per court order—Fidelity, and BlackRock—decreased 8,107 BTC worth over $478.22 million.
Since whales bought 47,000 BTC during this time, their impact on prices was insignificant, and prices rose. For now, only until fresh data confirm more demand will BTC prices likely remain flat, unable to break the all-important $60,000 level.
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New Crypto Whales Are Underwater, Will BTC Break $60,000?
Yesterday, Ju said that almost all new whales, especially those who got in via spot Bitcoin ETFs, were underwater when prices crashed towards $56,000.
In the coming days, traders must closely watch how prices react at the $60,000 to $61,000 zone. This is a region of liquidation that, if broken to the upside, could trigger more demand, lifting BTC above $70,000.
Conversely, if BTC prices fall from spot rates, dipping below $56,000, the odds of retesting former resistance levels, now support, at $53,000 and $50,000 remain high.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
