In a remarkable display of market activity, Bitcoin (BTC) whales accumulated a staggering $636 million worth of BTC on Tuesday, May 21. This surge in whale activity coincided with Bitcoin's price rally beyond $71,500, driven by growing optimism about BTC's future trajectory.
Bitcoin Whales Accumulate Massive BTC Stash
Thomas Fahrer, co-founder of Apollo, a Bitcoin insights provider, highlighted this development in a post on X. According to Fahrer, the latest surge in whale buying amounted to 8,958 BTC in a single day. Over the past seven days, whales have added a total of 12,058 BTC to their holdings, amounting to a hefty $840.32 million based on Bitcoin's current market price. This frenzy of accumulation appears to be driven by Fear of Missing Out (FOMO) as traders and investors scramble to secure their positions amid Bitcoin’s volatile price movements.
Despite the substantial whale activity, Bitcoin's price saw a correction, dipping to the $69,000 level. This decline has raised questions about the short-term trajectory of the oldest cryptocurrency.
Optimism Remains Despite Setback
Analysts remain optimistic about Bitcoin’s price trajectory, citing technical indicators and robust inflows into spot Bitcoin ETFs. On Tuesday, Bitcoin ETFs registered a phenomenal influx of $305.7 million, with BlackRock’s IBIT leading the charge. A significant portion of whale purchases comes from these ETFs, launched in January 2024. Analysts believe that further positive flows could help Bitcoin achieve new highs.
Will BTC Price Rebound?
Bitcoin’s price dropped to the $69,000 level but rebounded past $70,000, despite remaining in the red. As of Wednesday, May 22, BTC was down by 1.10%, trading at $70,098.61. The cryptocurrency boasts a market valuation of $1.38 trillion, although trading volume plummeted by 25.44% to $39.72 billion.
Ali Martinez, a prominent crypto analyst, offered insights into the situation. In a post on X, Martinez emphasized the significance of the TD Sequential, a technical analysis indicator known for predicting market turning points. "The TD Sequential has accurately predicted #Bitcoin price action on the one-hour chart. Now, it presents a buy signal, anticipating $BTC will rebound!" Martinez’s analysis suggests that despite the recent dip, Bitcoin could be poised for a rebound based on this buy signal. The TD Sequential indicator is popular among traders for identifying potential trend reversals and price movements, and a buy signal often boosts market confidence, potentially driving prices higher.
In conclusion, while Bitcoin whales' recent activity and the potential rebound offer exciting prospects, the market will be closely watching to see if Bitcoin can sustain its upward trajectory and achieve new highs.
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