Whales Purchase Bitcoin at $115,000 in an Attempt to Reverse the Market Direction?
In the world of cryptocurrencies, Bitcoin, the largest digital asset, has seen a slight dip in its value over the past few days. As of now, Bitcoin is trading below the median of the Bollinger Bands (4h), a technical indicator that suggests potential volatility.
Despite this, the market remains resilient with Bitcoin hovering near $116,000. This resilience is reflected in the significant gains made by large players, including whale investors and institutional investors like hedge funds, family offices, and publicly traded companies. Since July 4, whale investors have realized around $74 billion in profits, a clear sign of gain-taking in the market.
The past week has seen an accumulation of over 20,000 BTC by whales, with transactions involving 10,000 to 100,000 BTC. This accumulation is often linked to a bullish reversal for Bitcoin, suggesting a potential rebound in the near future.
However, the community is divided about whether this dip is a healthy correction in an uptrend or the start of a deeper correction. If the $114,000 support holds, Bitcoin could potentially reach $118,000, $120,000, or even $124,000. In case of a stronger correction, the 100-day and 200-day moving averages (around $110,000 and $103,000) would be key.
Meanwhile, Ethereum, the second-largest cryptocurrency, has seen a surge in demand. On August 18, Ethereum saw a record $2.83 billion in inflows, while Bitcoin Exchange-Traded Funds (ETFs) saw net outflows of $121 million, bringing the monthly total to nearly $140 million. This pullback signals a cooling of the market for Bitcoin, but not for Ethereum.
This article is written by Simon Dumoulin, a cryptocurrency enthusiast since 2019. The aim is to make cryptocurrencies understandable for everyone, with reliable and well-referenced content. The article does not contain any advertisements.
In conclusion, while the current dip in Bitcoin's value may cause some uncertainty, the accumulation of Bitcoin by whales and the bullish divergence suggested by several oscillators point towards a potential rebound. The market, however, remains uncertain between a temporary correction and a renewed bull run for Bitcoin.
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