Massive Accumulation Behind Bitcoin Price Recovery As Whales Add 40,000 BTC During Dip

Massive Bitcoin Accumulation Behind Bitcoin Price Recovery.

Many long-term BTC advocates and whale BTC holders continue to increase their BTC holdings, especially when the BTC price is on the decline. Many of them used the chance of the recent BTC price decline to purchase a combined amount of 40K BTC, valued at $1.65B.

Microstrategy made one of these purchases as it has always done in the past. The CEO of the asset management firm, Michael Saylor, described their buy-and-hold BTC strategy as hugely successful.

Data from the leading on-chain analytics platform, Santiment, and shared on Twitter by the top crypto analyst, Ali Martinez, showed that crypto wallets with 10K to 100K BTC increased their BTC holdings by more than 2.5% during the period when the BTC price declined from $39.9K to $38.3K.

source: @ali_charts

The above chart shows that Bitcoin whales took advantage of the recent downswing to buy 40,000 $BTC, worth $1.6B. Addresses with 10,000 to 100,000 BTC increased their holdings by nearly 2% when prices dropped from $39,900 to $38,200. This massive dip-buying helped BTC’s price to recover above $40K.

BTC’s recovery continues

BTC gained 4.0% in the last day to trade at $40.61k; its dominance index also surged by 0.1% and is now 41.4%. The price of the leading crypto dipped to about $38.3k during the first trading session yesterday. However, it recovered from the losses and made some gains during the US session the same way as the US stock indexes.

BTC analysts predict that if BTC can flip its current price of $40.61K to support, it would likely remain bullish and surpass the price corresponding to the 0.5 Fib retracement level at $42.95K. However, if the leading digital asset fails to maintain this level, it will find support around the $38.8K to $39K level, its next crucial support. A close below this price point could kick-start the next significant decline and invalidate the bullish hypothesis.

BTC has been bouncing around the ascending support line over the past three months and has hit that line seven times. Most of these touches caused an increase in BTC’s price. BTC also hit that line on Monday, but time will tell whether this would also increase its price. However, the bullish divergences on the RSI and MACD in the 24-hour chart indicate that a bullish trend reversal may occur as it has always been in the past.

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