Bitcoin’s recent price slump to $56,555 sent shockwaves through the crypto market. However, there are signs of a potential short-term recovery, thanks to the accumulation of over $2.8 billion worth of BTC in the past 24 hours.
One of the key factors behind this hopeful outlook is the renewed accumulation patterns of Bitcoin whales. These large investors have been actively buying the dip, with whale wallets adding 47,500 BTC tokens at an average purchase price of $59,000. This significant acquisition has pushed the cumulative BTC balance of active whales to 498.1K tokens, worth a staggering $29.38 billion.
CryptoQuant founder Ki Young Ju highlighted the significance of this whale activity, stating that the market is “entering a new era.” This sentiment is further supported by CryptoQuant analyst Dan, who believes that the behavior of short-term investors indicates a potential rebound for Bitcoin. By analyzing the Bollinger Band and SOPR data, Dan suggests that oversold conditions and a price rebound are likely in the near future.
Market intelligence platform IntoTheBlock also points out that Bitcoin’s recent drop aligns with previous cycles, indicating that the $58,000 range is a key demand zone to watch. They further suggest that if the market moves upward, there could be increased selling pressure around $62,000, confirming the potential for short-term relief.
Interestingly, Bitcoin has already started to prove these claims right, as it currently trades at $61,721, reflecting a 5% gain from the previous day’s price point of $58,000.
Disclaimer: This article provides informational content and should not be considered financial advice. The views expressed in this article are the author’s personal opinions and do not reflect the views of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions, and The Crypto Basic is not responsible for any financial losses incurred.