- On Wednesday, August 23, the BTC price recovered to $26,700 after the previous week’s Bitcoin crash.
- On-chain data provider Santiment explains that Bitcoin rose to $26.8 thousand on Wednesday because significant whale and shark addresses increased their assets.
- Bitcoin (BTC) has broken the critical 200-day moving average level located around $28,000.
With the sudden recovery in Bitcoin price, it was observed that whales and sharks accumulated; Will this recovery continue?
Bitcoin is Recovering After a Sharp Decline
On Wednesday, August 23, the BTC price recovered to $26,700 after the previous week’s Bitcoin crash. However, it partially retraced and is currently trading at $26,450 with a market cap of $513 billion.
On-chain data shows that Bitcoin whales have resumed activity after dumping last week. On-chain data provider Santiment explains that Bitcoin rose to $26.8 thousand on Wednesday because significant whale and shark addresses increased their assets. Among 156,660 wallets holding 10 to 10,000 BTC, they accumulated a total of $308.6 million since August 17.
Meanwhile, some reports claim that Robinhood has accumulated $3 billion worth of Bitcoin in the past 3 months. A hidden wallet believed to belong to Robinhood has accumulated this amount.
Although the intentions behind Robinhood’s significant Bitcoin holdings are unclear, this finding highlights the company’s strong interest in the digital asset sector. Robinhood is actively working to attract more cryptocurrency investors to its platform. This emerging situation is likely to generate increased interest from the crypto community.
Is the price increase in Bitcoin a sign of recovery?
It is still too early to say whether Bitcoin has changed its course after the price increase on Wednesday. While Bitcoin whales are accumulating their assets again, short-term holders have predominantly been selling in the past week.
In addition, technical charts show that Bitcoin price momentum generally appears bearish. The recent rejection at this level, combined with a 50-day moving average around a similar price, triggered a significant downward movement. Bitcoin (BTC) has broken the critical 200-day moving average level located around $28,000. This carries important trend information and falling below this level indicates a possible downward trend.
Although the RSI indicator has recovered from the oversold zone, it is still below the 50 threshold. This means that the current price is moving within a range but the overall momentum is still bearish. A renowned crypto analyst warned that Bitcoin needs to form three green candles for the price recovery to be confirmed.
