Bhushan Akolkar
On late Monday, the Bitcoin (BTC) price faced a stiff rejection at $70,000 levels dropping an additional 4.5% and moving all the way to $66,500. However, it seems that the Bitcoin whales are making the most of the opportunity while scooping over 5,900 BTC worth a staggering $397 million from the centralized exchanges (CEXs).
Bitcoin Whales Buy The Dips
As per the on-chain data from Spot on Chain, Bitcoin whale “12QVs” withdrew a total of 4,500 BTC valued at a total of $303 million from crypto exchange Binance, at the approximate Bitcoin price of $67,298. Of these, the whale withdrew 3,500 BTC soon after the BTC price corrected on Monday.
Similarly, three whales – probably acting as a single entity – withdrew 1,400 BTC, worth $94 million, from Bitfinex at around $67,185. As per on-chain data, these whales have collectively withdrawn 3,910 BTC from Bitfinex since June 12, at an average price of $65,764. They are currently sitting on an unrealized profit of $4.59 million.
Four whales accumulated 5,900 $BTC ($397M) from CEX in the past 24 hours!
1️⃣ Whale “12QVs” withdrew 4,500 $BTC ($303M) from #Binance at ~$67,298.
• Among these tokens, 3,500 $BTC ($233M) were withdrawn after the #Bitcoin price plunged.
2️⃣ Three whales (likely one entity)… pic.twitter.com/YCWNM5GI4z
— Spot On Chain (@spotonchain) July 30, 2024
The recent selling pressure on BTC came after the US government moved a total of 29,800 Bitcoins worth over $2 billion on Monday. This news was enough to send tremors across the broader crypto market as it hints at the possibility of a Germany-like sell-off going ahead. On the other hand, Mt. Gox has also been moving its BTC preparing for the next leg of distributions to creditors.
Despite this, the BTC price continues to hold above the crucial support of $65,800 from where the asset has bounced back multiple times in the past. As long as the BTC whales defend this support zone, the asset is still in the safe zone.
Also Read: Bitcoin Breaks $70,000, PlanB Predicts BTC To Hit $150K By Year-End
BTC Recovery Very Soon?
For some while, the Bitcoin price has been trading in the range between $65,000-$70,000. For BTC to give a strong breakout moving further, it must get a strong catalyst from macro indicators such as a Fed rate cut, and liquidity infusion.
The CryptoQuant data shows that the Coinbase Premium Index is still trading below the SM14, which hints at continued selling pressure on BTC. Cryptoquant analyst Burak Kesmeci clubs the CPI data with the SM14 to make the prediction. He wrote:
“Especially after the approval of Spot ETFs in the US, the CPI data has become a much more effective leading indicator for price tracking. I find using the CPI data in conjunction with the SMA14 to be more successful for monitoring short-term trends. Currently, the CPI is at -0.008 and the SMA14 is at 0.020. This indicates that sellers have a stronger hand in the US market”.
When Coinbase Premium Index is below SMA14, selling pressure increases
“Examining the data for 2024, we clearly see that Bitcoin price corrections have occurred when the CPI (Coinbase Premium Index) fell below its’ SMA14.” – By @burak_kesmeci
Link 👇 pic.twitter.com/tN99LNhNkr
— CryptoQuant.com (@cryptoquant_com) July 30, 2024
Also Read: Why Is Bitcoin Price Falling Today?
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Bhushan Akolkar
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
