Bitcoin whales have been quite bold recently, pulling massive amounts of BTC from major exchanges as prices fall. This indicates strategic accumulation. An anonymous whale recently withdrew 1,700 BTC ($161.35 million) from Binance within 48 hours. Bitcoin price action may take a significant turn after this.
This leads to an earlier withdrawal of 1,000 BTC ($94.43 million) via another wallet just a few hours before.
These large-scale pullbacks highlight a recurring trend in the crypto market. That being said, smart investors are taking advantage of price corrections to increase their holdings. These moves come as the price of Bitcoin falls below the important support of $95,000. Such market conditions historically attract whale activity ahead of price spikes that keep retailers speculating about what might come next.
Bitcoin Price Fall: A Buying Opportunity?
Since its fall, Bitcoin headlines have focused on the cryptocurrency. BTC price has lost 1.47% in the last 24 hours and is trading at $93,565 at the time of writing. After this drop, Bitcoin’s market capitalization reached $1.85 trillion, and FDV’s reached $1.96 trillion. The same activity that saw $33.09 billion in trading volume up 41.54% over the same period says volume has increased.
Such a pullback comes after the price of Bitcoin repeatedly failed to break the psychological barrier of $100,000 over the past month. The cryptocurrency is in a consolidation phase, below $98,000 and on the 4-hour chart.
The short-term outlook remains dominated by bearish momentum, opting to trade within this range after failing to break the $100,000 level with a strong bounce earlier this week.
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The decline comes as activity in the cryptocurrency market continues to increase, as evidenced by the renewed interest of potential traders and investors in the market. The falling price appears to be fueling a spike in trading activity among bitcoin investors, as some see the decline as a buying opportunity, while long-term investors believe the price of Bitcoin can withstand the decline.
Technical analysis: consolidation phase
The technical interpretation of Bitcoin’s price movement currently suggests that it is tied to a consolidation phase. This is shown by the blue shaded channel.
The Average Directional Index (ADX) on the 4-hour chart is 16.78, indicating that there is no strong momentum going one way or the other. This means that there isn’t a cool, collected ‘up’ or ‘down’ happening with Bitcoin, leaving traders wondering if the next move could be ‘up’ or ‘down’.
Key points to look out for are support at $92,000, which is strong despite falling waves and resistance at $96,000. If this resistance is breached, bullish sentiment will be rekindled with Bitcoin potentially retesting the $100,000 level.
On the other hand, if the support at $92,000 cannot be held, further losses may occur and the next major support remains at $90,000. Although the bears are taking control of this short-term trend, traders are closely watching the activity of the whales to see where price action may be headed.
