Bitcoin (BTC) continues to hold above key support levels, despite the recent transfers of over 13,000 BTC from an address labeled Mt. Gox to exchanges not causing significant turmoil in the market. Despite previous examples where such transfers triggered significant price declines, the market’s reaction this time was relatively quiet, indicating increased flexibility among market participants. The accumulation of whales in particular supports this increase in flexibility.
Whales Continue to Accumulate BTC
In recent weeks, whales, large-scale Bitcoin investors, have been actively accumulating more BTC, contributing to the stability of the market. CentimeterAccording to ‘s data, wallets holding between 100 and 1,000 BTC have collectively added approximately 94,700 BTC to their wallets in the last six weeks. A Prize Pool Worth 21 Million TL Awaits You from BinanceTR! Participating and winning has never been easier.. You can sign up to BinanceTR from this link. Get your first crypto!
Whales BTC The accumulation signals strong confidence in the future price potential of the largest cryptocurrency, even as new investors grapple with market volatility.
While broader market sentiment remains bullish, Bitcoin’s price is largely trading within a narrow range. The current consolidation phase continues despite bullish indicators, with the crypto king struggling to break above $60,000. The current price hovering around $59,500 reflects the cautious approach of market participants.
Short-Term Investors Put Pressure on Price
Interestingly, a significant portion of the selling pressure appears to be driven by short-term investors, particularly new investors entering the market in early 2024. GlassnodeData from shows that when the price of Bitcoin drops below $50,000, these investors quickly dump their assets, triggering what is commonly referred to as ‘panic selling.’ The Market Cap to Realized Value (MVRV) ratio of Short-Term Traders (STH) has fallen below 1.0, signaling prolonged losses and potential sell-offs.
Despite the current challenges, the overall stability of the market suggests that the downtrend may not be as strong as before. The ongoing whale accumulation and the limited impact of large BTC transfers are positive signs for the market. If Bitcoin manages to break and sustain levels above $65,000, a more pronounced and sustained uptrend could be paved the way, drawing fresh liquidity into the market. As a result, the downward momentum could decrease further.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
