According to experts, top Bitcoin whales have been buying the dip, adding almost 6,000 BTC in a single day. CryptoQuant analysts suggest that Bitcoin wallets have been adding aggressively during the recent market slump. Per a recent post from Yu Shiuan Chen, “Retail investors and small whales sell BTC, but the top 69 large whales buy the dip. We can see a slight increase in BTC exchange reserves during the last 7 days, but Top 69 large whales buy the dip, even today they bought more than 6,000 BTC (Net).”
Bitcoin Whales and Their Contribution to BTC Price
Analysts have been debating on several variables that may have led to the recent drop or may impact the price soon. The behavior of whales throughout the previous week has been one of the elements that came up.
Roughly 16 Bitcoin whales abandoned the network or redistributed their BTC supply, according to crypto analyst Ali Martinez in a tweet on April 4. Martinez also shared a Glassnode chart that indicates a gradual fall in the number of addresses having a balance of 1,000 BTC or more since late March. This figure was 2,255 on April 3, and it was around 2,271 on March 28, indicating a decline of 16 addresses.
Given the current price of Bitcoin, this indicates that whales who controlled at least $735 million (possibly more) in the largest cryptocurrency by market cap either left the network or reallocated their supply. According to Martinez, such behavior could negatively affect the price of Bitcoin, which at the time of publication was $45,971.
Bitcoin’s Recent Price Movements
Bitcoin (BTC) has been battling to break through the $47,000 resistance, and despite the April 6 decline below $44,000, there is still accumulating evidence that the market structure is robust.
Bitcoin experienced a 25.6 percent drop on December 3, 2021. It ended at a low of $42,360 after 18 hours of decline. The price was 18% lower four months later, closing on December 2, 2021, than four months before.
Much has changed over that period, and hard evidence comes from other sector sections. MicroStrategy, a commercial software development corporation, disclosed the purchase of 4,197 Bitcoin between February 15 and April 2, 2022.
According to Glassnode statistics, inflows into Canadian Bitcoin exchange-traded funds (ETFs) have also reached an all-time high. Since January, these Canadian investment entities have raised their holdings by 6,594 BTC, getting a new high of 69,052 BTC under control. The assets of the Purpose Bitcoin ETF, a spot product, are presently valued at $1.68 billion.
Options Traders Worried of a Downside Risk
Although Bitcoin is currently not strong enough to break the $47,000 resistance, it is still essential to monitor professional sentiment to gauge the level of support. If professional sentiment is negative, then a price crash is likely. On the other hand, if it is positive, then a rally is expected.
The skew indicator for Bitcoin has been fluctuating between zero and 8% since March 9. Despite not signaling fear, some traders are overcharging for protection. The data released by the CME Group on Bitcoin derivatives suggests that BTC might break the $47,000 resistance. It could trigger a short squeeze and allow more investors to use futures for their trading.
If Bitcoin’s futures premium had been around 10%, traders would have incurred a higher risk of adding long positions. However, since the market structure is relatively sound, bulls are more likely to succeed.
Source: https://crypto.news/bitcoin-whales-6000-btc-day/