- Bitcoin whales’ accumulation momentum appears to be waning, according to on-chain data, raising concerns about the cryptocurrency’s price stability above $60,000.
- The largest accumulation occurred between March 5 and March 7, with subsequent price dips seeing less accumulation.
- Analysts are questioning if this could be a precursor for a crash to $50,000, despite most remaining optimistic about Bitcoin’s long-term prospects.
Bitcoin whales’ accumulation momentum is waning, raising concerns about the cryptocurrency’s price stability. This article explores the potential implications of this trend.
Whale Appetite For Bitcoin Dips According To On-Chain Data
Large investors, known as whales, have been accumulating Bitcoin, particularly during market dips, since the beginning of the year. This activity has largely helped to maintain a bullish sentiment and prevent significant price declines. However, on-chain analytics firm IntoTheBlock has revealed a pattern of declining accumulation volumes among these whale wallets over the past month.
Declining Accumulation in Each Buying Cycle
The largest accumulation occurred between March 5 and March 7, when these wallets acquired over 120,000 BTC. However, each subsequent price dip has seen less accumulation than the one before it. Particularly, Bitcoin’s recent dip to $56,000 failed to attract notable whale accumulation. This drop in buying and selling activity indicates whales may have lost some interest or appetite for accumulating more Bitcoin in the short term.
Precursor For A Crash To $50,000?
The waning conviction among Bitcoin whales has raised the question of whether Bitcoin could reverse back into a full bearish momentum. These concerns are particularly valid, considering some analysts are of the notion that Bitcoin might’ve reached its peak in this cycle. While the lower whale buying activity could stall price increases in the short term, it is not a sure sign that Bitcoin is headed for a major price crash. However, if the trend continues for several more months, it could signal lower demand and a weakening bull market.
Bitcoin’s Long-Term Prospects Remain Optimistic
According to the “In/Out Of Money Metric”, there is still a strong resistance volume between $59,000 and $61,000. A drop below this range again would push 552,220 addresses into losses. In fact, while a drop to his level would be painful for many holders, most crypto analysts remain optimistic about Bitcoin’s long-term prospects. At the time of writing, Bitcoin is trading at $61,488. The crypto recently rebounded around $57,500 and is up by 7.4% in the past seven days.
Conclusion
While the waning accumulation momentum among Bitcoin whales raises concerns, it does not necessarily signal a major price crash. However, if this trend continues, it could indicate lower demand and a weakening bull market. Despite these concerns, most analysts remain optimistic about Bitcoin’s long-term prospects.
