Bitcoin‘s (BTC) price is exhibiting instability as large stakeholders, often referred to as crypto whales, have ceased their purchasing activities. This halt has spurred concerns regarding Bitcoin’s future valuation, especially as technical indicators suggest a bearish trend. Historically, such trends have been linked to extended periods of decline or consolidation.
Why Are BTC Whales Concerned?
According to recent data from Lookonchain, institutional investors have significantly slowed their Bitcoin purchases, leading to a 1.44% drop in Bitcoin’s value over the past 24 hours. Currently, Bitcoin is trading around $58,300, a notable decrease from the $61,900 peak reached last Monday. The recent price fluctuations and Bitcoin falling below the $60,000 threshold appear to have dampened institutional interest. Access COINTURK FINANCE to get the latest financial and business news.
Lookonchain reported, “Institutions seem to have temporarily stopped buying, and BTC price dropped by 4.5% today! We noticed that institutions stopped acquiring USDT from Tether’s Treasury and transferring it to exchanges two days ago.”
What Do Experts Say About Support Levels?
In addition to the slowdown in institutional purchases, there’s been a notable decrease in Tether’s supply, with a $1.3 billion USDT outflow from exchanges since the August 5 crypto market crash. This reduction in buying pressure suggests that investors are adopting a more cautious stance.
Renowned analyst Peter Brandt has indicated that Bitcoin might experience a shift from a bullish to a bearish trend. He pointed out the presence of a “death cross” between the 8 and 19 simple moving averages (SMA) on the weekly chart.
User-Usable Inferences
David Puell, a Research Fellow at ARK Invest, has emphasized the critical support levels that need to be maintained if Bitcoin experiences a price correction. Key takeaways include:
- Bitcoin’s crucial support levels are $52,000 and $46,000.
- A “death cross” has been identified between the 8 and 19 SMAs on the weekly chart.
- A $1.3 billion USDT outflow from exchanges indicates reduced buying pressure.
In conclusion, the current technical landscape, marked by the pause in institutional buying and the formation of the death cross, suggests a cautious outlook for Bitcoin in the near term. As critical support levels become more evident and market sentiment grows more risk-averse, the upcoming weeks may clarify whether Bitcoin can stabilize or if further declines are imminent.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
Source: https://en.bitcoinhaber.net/bitcoin-whales-halt-purchases