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Bitcoin faces turbulent times as major holders, known as whales, shift substantial amounts of BTC amidst market volatility and liquidations.
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This recent movement has sparked discussions among analysts regarding the potential implications for future price movements and market sentiment.
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According to data from COINOTAG, over 26,000 BTC were accumulated by whales last week, indicating confidence despite current market pressures.
Bitcoin whales are strategically accumulating BTC amidst a market dip, sparking insights on potential price recovery. Discover the latest trends in the crypto space.
Bitcoin whales move $2.3 billion in BTC amidst market sell-off
The cryptocurrency market is experiencing significant selling pressure, with Bitcoin (BTC) down approximately 10% for the week. Bitcoin researcher Axel Adler Jr. reported that this marks BTC’s largest quarterly drop of around 20% since August 2024, highlighting a drastic downturn compared to the average drawdown of 8.9% over the past year.
The recent market correction has adversely affected short-term holders (STH) as well, with data indicating that addresses holding BTC for less than 155 days have collectively moved 27,500 BTC at a loss over the past 24 hours. In contrast, Bitcoin whale addresses engaged in notable accumulation activities, with 26,430 BTC transferred into known accumulation addresses on February 24. Typically, these addresses are associated with over-the-counter (OTC) deals and long-term holding strategies.
Additionally, there was a significant purchase earlier in the week, with a reported acquisition of 20,356 BTC for $1.99 billion, showcasing the willingness of some to capitalize on perceived value during this downturn.
Market analysis: Bitcoin price may bounce between $85,000 and $81,000
On February 24, Bitcoin’s daily candle closed below the $92,000 range, thus confirming a double-top pattern that has been developing over the preceding months. Following the pattern’s completion, a sharp bearish reaction occurred, suggesting an estimated technical drawdown of 16% from the neckline, potentially targeting the $78,000 to $76,000 levels.
A liquidity gap, established on November 11, 2024, between $81,700 and $85,100, remains unfilled, indicating a possible zone where buyers could step in. An anonymous crypto trader, known as CRG, noted a significant cluster of spot bids on Binance around the $84,000 to $86,000 mark, indicating strong buying interest in that range.
Monitoring Bitcoin’s price action in this critical area will be vital, as a potential dead cat bounce could manifest. If Bitcoin fails to hold the support level at $81,000, the last line of defense would be between the CME gap at $77,000 and $80,000. A decline to the $77,000 threshold would also fulfill the projected price target of the recently confirmed double-top pattern.
Conclusion
The recent movements in Bitcoin’s price highlight the ongoing volatility within the cryptocurrency market. As whales continue to accumulate, the immediate future of Bitcoin remains uncertain. However, clear support and resistance zones have formed, which could guide traders in navigating potential buying or selling opportunities. Maintaining vigilance during this period will be essential for traders aiming to capitalize on market fluctuations and strategically position themselves for future developments.
