Bitcoin stalls: Why BTC risks $65K fall despite $23M whale buy

Since retracing from $72k, Bitcoin has experienced a strong downside momentum, falling to a low of $68,110. At press time, Bitcoin [BTC] traded at $68,705, down 2.93% on daily charts, reflecting prevailing market risk. 

The price slip saw BTC drop below its short-term Moving Averages, 20- and 50-day EMAs, indicating strong downward pressure.

Bitcoin whale adds 340 BTC worth $23M

Bitcoin’s drop below $70k incentivized new investors, especially whales, to jump back into the market to accumulate. 

According to Onchain Lens, a newly created wallet withdrew 340 BTC worth $23.14 million from Binance. Usually, when a whale accumulates during a period of weakness, it shows optimism with the market. On the Futures side, whales are also eyeing a market recovery from the recent slip. According to Lookonchain, a whale flipped from short to long on BTC. 

The whale opened a 40x long on 439.92 BTC worth $30.23 million. This shift from shorts to longs suggested bullish sentiment, with the whales making more gains as the market rebounds. 

Beyond these two whales, high‑net‑worth investors have been aggressively accumulating, as per Checkonchain, with MegaWhales and Sharks ramping up buying pressure.

MegaWhales Exchange Balance Change climbed to 20.7k BTC as of writing, while Sharks Balances rose to 60.9k BTC. Such a jump showed renewed accumulation 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 rebound. 

Can demand boost BTC?

While whales have shown greater determination to hold on despite prevailing market conditions, their demand remains insufficient. In fact, the trend has continued to weaken, suggesting intense downside pressure from other market participants.

Looking at MACD, the momentum indicator has remained in negative territory and was at -162 at press time. When MACD is negative, it suggests that selling pressure has significantly outweighed buying pressure.

Often, a prolonged stay in this zone has further weakened the market, serving as a prelude to continued price drops. Therefore, if prevailing market conditions persist, despite whales buying, BTC is likely to see a sustained decline.

As such, BTC could breach the $67,500 support and drop towards $65k, which has previously acted as support. However, if the market interprets whale buying activity positively and it is backed by favorable external conditions, BTC could hold.

A positive reaction will see BTC successfully defend $70,034, setting the ground for a potential jump towards $71,885 in the short term.

Final Summary

• Bitcoin whale activity intensifies, as a whale purchases 340 BTC worth $23.14 million while another goes long with 40x leverage. 
• BTC is still experiencing downside volatility, falling below 20- and 50-day moving averages.