Whales Buying BTC Price Dip as CZ’s $85K Prediction Comes True

The latest unexpected crash had Bitcoin holders spooked and the results are in. The Fear and Greed index is now hovering at 21, which means it is now in extreme fear territory. BTC Price can head eitherway from here.

The current extreme fear is the lowest that the fear and greed index has been for months and this was bound to have an impact on investor sentiment. On-chain data recently revealed a sharp dip in short term holder SOPR below 1.

The decline confirms a sharp sell-off from short-term holders hence indicating that they have been panic selling. Meanwhile, the long-term holder SOPR (holders that have held for at least 155 days) did not demonstrate much change.

The analysis reveals that long-term holders remain optimistic about their prospects. On the other hand, the short-term holders may see this as a sign of more downside.

Bitcoin whales are buying back at discounted BTC price

Bitcoin whales have played a major role in recent price action. Large holder netflows dropped from 6,540 BTC on 20 Feb. to -19,620 BTC by 22 Feb., just before Bitcoin dipped below $90,000.

The sharp drop occurred just before the price slid below $90,000, indicating that whales contributed a great deal to the selloff. In other words, whales may have induced the selloff so that they can buy back lower.

Whale buying activity rebounded quickly. On Feb. 25, large holder inflows totaled 11,200 BTC, compared to 1,870 BTC in outflows. The shift confirms that Bitcoin whales have been aggressively buying the dip.

But the real question is why whales would sell and then buy back. This usually happens when whales intend to manipulate prices into dropping lower so they can buy back at a discount. Such events are usually characterized by a robust liquidation.

Interestingly, Bitcoin just recorded the highest single-day-long liquidations in the last 6 months on 25 February at almost $559 million.

The massive liquidation event suggests that this recent crash may have been another leverage shake-off.

Former Binance CEO CZ’s prediction comes true, makes new prediction

CZ had predicted on 17 December that Bitcoin would drop as low as $85,000. Many thought that BTC could not drop that low especially after the price achieved a new ATH high in January.

Nevertheless, Bitcoin recently dropped as low as $85,953, putting it within the same price zone as CZs prediction. CZ introduced a new prediction recently, in which he predicted a Bitcoin crash from over $1 million to $985,000.

This new prediction revealed that CZ expects a $1 million price tag in the future. But, just as was the case with his previous prediction, this new prediction could take months before it becomes a reality. It is therefore not a matter of “if” but “when.”