Bitcoin (BTC) might experience price volatility soon given the activities of whales in the ecosystem. As per a new update by on-chain data platform CoinGlass, Bitcoin’s perpetual futures order book reveals that whales have placed a large buy order around $70,000 and $71,000.
Sell wall at $75,000 could cap Bitcoin’s upside
This strong bid implies that Bitcoin whales are ready to accumulate a large volume of BTC if the price drops toward this range.
This development also creates potential downside support for the leading digital asset, which has rallied by over 5.8% in the last seven days.
According to CoinGlass, whales are active on both sides of the divide. Notably, a sell wall has also emerged between $74,000 and $75,000.
This indicates that many large holders have placed sell orders on exchanges and are waiting for Bitcoin to soar to around $75,000 to offload it.
The development could impact the upward movement of BTC because, as the price approaches that level, it might struggle to go higher. This is as a result of supply overwhelming demand on the market. This could cause strong price resistance for Bitcoin near the $74,000 and $75,000 level.
The Bitcoin market currently is seeing large holders using the ongoing rally to sell their holdings. They are likely selling to small traders buying the hype that a rebound is under way for the leading digital crypto coin.
It is worth noting that with Bitcoin trapped between large buyers and big sellers at different price ranges, whales could trigger a “liquidity sweep” in either direction.
In the last 24 hours, Bitcoin has fluctuated between a low of $70,606.34 and a peak of $74,051.81. As of this writing, Bitcoin exchanges hands at $72,807.20, which represents a 1.7% increase within the time frame.
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The price movement confirms a struggle between large sellers and buyers as prices vary.
The trading volume has climbed up by 11.81% to $66.11 billion. Market indicators show there is renewed institutional accumulation via exchange-traded funds’ (ETFs) demands.
Bitcoin whales buying dip
As U.Today reported, Bitcoin whales did not back down amid the ongoing market volatility.
In one notable buy, whales scooped over 30,000 BTC valued at about $2 billion within a seven-day period.
These large holders took advantage of the 50% dip to increase their portfolio.
A similar move was made by Hyperliquid whales recently when they backed the Bitcoin rally with a $257.49 million bet.
Source: https://u.today/bitcoin-whales-place-strong-bids-at-71000-price-scenarios-to-watch