Whales Gained $2.8 Billion BTC in 24-Hour Raid
Leading cryptocurrency Bitcoin is currently witnessing a resurgence in its short-term price trajectory after accumulating value of over $2.8 billion. Bitcoin (BTC) in a 24-hour period only. This increase in accumulation follows the recent decline in the price of Bitcoin, which dropped to $56,555 at the beginning of the week, sparking concerns in the cryptocurrency world.
Buoyed by new on-chain metrics, market watchers are finding reasons to be optimistic about Bitcoin’s near-term prospects despite recent price swings. One notable development is the renewed patterns of accumulation observed among them. Bitcoin whales.
According to CryptoQuant founder Ki Young Ju, whale wallets that traded in the last 24 hours accumulated a staggering total of 47,500 BTC during that period. Remarkably, these whales purchased Bitcoin at an average price of $59,000; This marks a concerted effort to “buy the dip” with a total investment of $2.8 billion. This significant acquisition led Young Ju to claim that the market had “entered a new era” characterized by renewed confidence among major investors.
As a result of this latest accumulation, the cumulative BTC balance held by these active whales has increased from approximately 450 thousand BTC the day before to 498.1 thousand tokens. This accumulation underscores the significant influence wielded by these leading investors, who currently own $29.38 billion worth of Bitcoin.
On-chain Metrics Signal Bitcoin Price Recovery
In a separate analysis, CryptoQuant analyst Dan examined on-chain metrics to support a potential recovery in Bitcoin price. Dan focused on the behavior of short-term investors, whose activities often influence the price movements of cryptocurrency.
Dan examined the Bollinger Band technical indicator along with Bitcoin’s Spent Output Profit Ratio (SOPR) data; This data helps identify potential buying and selling points based on transaction profitability. He noted that SOPR reaching the bottom of the band during bull markets indicates oversold conditions and often precedes a price recovery; This is a currently developing scenario.
Additionally, Dan emphasized that positive sentiment among general investors has diminished due to the ongoing market correction. According to him, the cooling of market excitement indicates that a recovery may be on the horizon after this adjustment period, which further strengthens the possibility of a short-term relief in the Bitcoin price.$BTC – Possibility of short-term recovery
“In general, a short-term rally in a bull market usually occurs when the short-term SOPR reaches the bottom of the Bollinger Band.” – With @DanCoinInvestor
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— CryptoQuant.com (@cryptoquant_com) May 3, 2024
BTC Demand Zone Set at $58 Thousand
Additionally, information from market intelligence platform IntoTheBlock shed light on Bitcoin’s recent price sentiment. IntoTheBlock observed parallels between Bitcoin’s recent drop to the $56k range and previous cycles in terms of the proportion of holders experiencing losses.
Identifying the $58,000 range as the key demand zone to watch, ITB reaffirmed the idea that a short-term relief is approaching for Bitcoin, suggesting that increased selling pressure could emerge around $62,000 if the market shows an upward trend.
interestingly, Bitcoin quickly confirmed the assessments made by these leading organizations. Currently, Bitcoin is trading at $61,607, reflecting a significant gain of 4.28% from the previous day’s price point of $58,000.
Also read: Ethereum ETFs: May Rejection May Be Near, Analysts Eyeing August Confirmation
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Maxwell is a crypto-economic analyst and Blockchain enthusiast who is passionate about helping people understand the potential of decentralized technology. I write extensively on topics like blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its effects on economic freedom and social well-being.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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