Bitcoin bulls are struggling to maintain their earlier gains, driven by positive U.S. inflation data. After the Wall Street opening on May 16, Bitcoin (BTC) fell below $66,000, even as new U.S. macroeconomic data supported the bullish outlook.
Taking advantage of the price slip, an unidentified Bitcoin whale has made headlines by purchasing 101.7 BTC, valued at over $6.7 million. This move brings the whale’s total Bitcoin holdings to a staggering $230 million, amassed over the last two months.
This substantial acquisition comes as the market grapples with volatility and reacts to significant economic data from the United States.
Bitcoin Whale Makes Big Moves Amid Market Uncertainty
According to a post shared by crypto analyst Lark Davis on X, a whale, a term used to describe entities holding large amounts of a crypto asset, bought 101.7 BTC. This is part of a broader accumulation strategy that has seen the whale amass $230 million in Bitcoin over two months. This purchase occurred as Bitcoin prices hovered around $65,236 after falling from the critical $66,000 mark.
A whale just bought 101.7 Bitcoin worth over $6.7 million dollars.In the last 2 months (while you were bearish), this guy accumulated $230 million worth of $BTC.If you keep selling your precious Bitcoin in times of fear, whales will continue to accumulate. pic.twitter.com/zV1MHBDbt0
— Lark Davis (@TheCryptoLark) May 16, 2024
This acquisition is particularly noteworthy, given the current market conditions. The Bitcoin market has been experiencing notable fluctuations, with BTC/USD slipping below $66,000 following the release of new U.S. economic data. Despite a recent rally, which saw a 7.5% increase in Bitcoin’s price, maintaining these gains has proven challenging.
The latest U.S. jobless claims report, released on May 16, showed 222,000 new claims, slightly below the forecasted 220,000. This report added to the positive momentum generated by the previous day’s Consumer Price Index (CPI) and Producer Price Index (PPI) data; both exceeded expectations and spurred a broad rally in risk assets, including Bitcoin.
Keith Alan, co-founder of trading resource Material Indicators, commented on the market’s reaction. “As difficult as the PPI report may have been to interpret, today’s Core Inflation metrics seem to be very easy. Good News = Good News,” he remarked on X. This sentiment bolstered hopes that Bitcoin could overcome significant resistance levels and continue its upward trend.
Analyst Points Out Crucial Bitcoin Price Support to Remain Strong
Despite the positive outlook, analysts are advising caution. CrypNuevo, a well-known trader, highlighted a crucial resistance area from $66,000 to $70,000, with $69,000 being a significant liquidity level. He mentioned the possibility of consolidation or retracement before aiming for this cluster, indicating potential volatility in the near future.
$BTC Liquidation Heatmap 1-month time frame:We're entering a liquidation cluster zone that goes from $66k to $70k.The level with the highest liquidations inside this area is $69k (main liquidity level).We might consolidate or retrace first, but this cluster is the target. pic.twitter.com/k1vtVwXODr
— CrypNuevo (@CrypNuevo) May 16, 2024
Keith Alan emphasized the importance of testing lower support levels to confirm a sustained bull run. He pointed out that Bitcoin has not yet retested support near the local low of $56,500. Moreover, the 50-day moving average, currently at $65,100, represents another potential barrier. “Bid support remains thin down to the $60,000 – $61,000 range,” Alan warned, indicating that a dip below $60,000 might be necessary to solidify a robust market foundation.