Bitcoin Whales Started Accumulating $BTC After Price Dropped to $30,000, Data Shows
Bitcoin’s bearish trend could turn bullish in the near future if investors keep on buying the flagship cryptocurrency above the key $30,000 level. This was reportedly the level bitcoin whales started selling at during the last bull run.
According to on-chain monitoring resource ecoinometrics, once the price of BTC started surging from around $10,000 in October of last year to a new $64,000 all-time high earlier this year, whales started offloading funds above $30,000.
While bitcoin whales kept on offloading funds all the way up, smaller investors kept buying at every level until BTC hit its new all-time high. Whales dumping their funds did not trigger enough selling pressure to stop the price of bitcoin from moving up, but “when FED [fear, uncertainty and doubt] was added to the situation the small fish also stopped accumulating resulting in the -55% correction we are in right now.”
Since the price of BTC stabilized around $30,000, however, things appear to have changed as both whales and smaller investors are once again accumulating, while other investor categories “have turned neutral.”
This accumulation could lead to a trend reserval, according to ecoinometrics. As CryptoGlobe reported, several technical indicators are now also suggesting the price of the apex cryptocurrency could start moving up again soon.
A report published by Glassnode details bitcoin’s reserve risk indicator, which measures the confidence and conviction of long-term holders, is currently at 0.003, down from a mid-April all-time high of 0.007. A lower reserve risk implies higher confidence in the market.
Bitcoin’s MVRV Long/Short ratio has also dipped below 0% for the first time in 14 months on July 10, implying that traders are losing on their investments and now see a buying opportunity in the market.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
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