Bitcoin Whales are Taking Advantage of the Ongoing Crypto Plunge

As noted by Santiment, Bitcoin whale addresses with 100+ bitcoins continue to accumulate in the 34k-38k range amid this volatility. The bitcoin crash shook the market when the digital asset plunged over 50% of its all-time high value to $33,000. Market sell-offs created a ripple effect across the financial space, impacting the crypto market heavily. Investors scrambled to get rid of their holdings during this time, making the market sentiment plummet.

Whales Remain Unfazed

Over the past five years, more than 1.7M $BTC has been added to whale addresses, including 60k more in the past two months. Even though most retail buyers got scared during the March 2020 crash, these addresses managed to accumulate roughly 1 million BTC and hold onto them until the rally started in October 2020. 

During the early 2021 boom, they gradually liquidated a tiny percentage of their assets, and as bitcoin began to fall in November, it began to accumulate again. These addresses boosted their BTC holdings by 4.55 percent in just 30 days.

During the recent price crash last week, one of the addresses accumulated millions in Bitcoin. Each purchase ranged from $2 to $18 million in BTC every few hours, with an average of 48,000 BTC. This whale seemed to be buying up all of the coins being thrown on the market. The wallet had successfully increased its holdings by almost a hundred thousand bitcoins by the weekend. In response to the falling price, the whale would purchase more bitcoins.

The market’s sell-offs have also benefited other whales. As the exchange supply shrinks, these huge investors ensure that there is no shortage on their end in a supply crunch.

Bitcoin Finds Support

Bitcoin’s price began a downward retreat from the $38,500 resistance level. BTC fell below $36,500 and the 100 hourly simple moving average.

On the other hand, the bulls were active near the $35,550 level. A low was formed near $35,550, and the price rose again. The price moved decisively above the $36,200 and $36,500 resistance levels. Furthermore, on the hourly chart of the BTC/USD pair, there was a break above a strong negative trend line with resistance near $36,500.

Bitcoin is currently trading at $36,580.97 and the 100 hourly simple moving average. It is approaching the $37,000 resistance level. It is close to the latest collapse’s 50% Fib retracement level from the swing high of $38,899 to the low of $35,550.