Bitcoin has faced a downturn of over 4% in the last day, now trading below the $80,000 threshold. While smaller investors rush to sell due to fear, larger entities, commonly known as whales and sharks, have taken the opportunity to acquire about 4,846 BTC, equating to roughly $400 million, in the past few weeks. This notable buying spree is seen as a sign of a potential market rebound later this month.
How Are Whales Adjusting Their Tactics?
Insights from blockchain analysis firm Santiment reveal that addresses holding more than 10 BTC have engaged in three distinct accumulation phases since October 2024. The initial wave of purchases kicked off in mid-October and persisted through the holiday season. A subsequent wave began around mid-January, just before Bitcoin achieved its all-time high of $109,000. However, many large investors who started to sell in mid-February contributed to the current market decline.
Will Bitcoin See a Price Recovery Soon?
Data shows that since early March, whales have been capitalizing on price dips to enhance their holdings. Historical trends suggest that such accumulation often precedes significant market shifts. If buying momentum continues, experts anticipate a recovery as March progresses.
QCP Capital identifies the $80,000 mark as a vital support level for Bitcoin in the near term. The momentum necessary for a price increase could hinge on forthcoming U.S. inflation statistics and stock market trends. Analyst Kevin Svenson has pointed out that Bitcoin is at a crucial technical level around $77,000, where a strong response could sustain its upward trajectory.
- Whales have purchased nearly 4,846 BTC during recent price drops.
- Three significant accumulation phases have been observed since October 2024.
- The $80,000 level is a critical support zone, potentially influencing future price movements.
The ongoing strategies of larger investors indicate a possible shift in market sentiment, as they seem to position themselves favorably against the backdrop of recent price declines. Observers are keenly monitoring the potential for a rebound as underlying pressures and macroeconomic factors continue to play a significant role in Bitcoin’s price dynamics.
