NOIDA (CoinChapter.com) — During the recent crypto market crash, Bitcoin (BTC) dropped below $61,000 for a while before recovering. Despite the price dip, Bitcoin whales continued buying BTC tokens to add to their coffers.
The behavior highlights the market confidence in the BTC’s long-term value while indicating a disconnect between whale activities and short-term market fluctuations. A key reason for the rally could be the anticipation of the upcoming Bitcoin halving.
Whale Accumulation Amid Market Volatility
As the Bitcoin ecosystem prepares for another halving event, the response from whale holders has been decidedly bullish. Data from Santiment, a leading provider of on-chain insights, reveals significant buying activity.
Per a post by Santiment, BTC whales controlling wallets holding between 100 to 1,000 BTC added an additional 43,489 coins, amounting to approximately $2.75 billion since March 1. The tier’s activities indicate optimism, as these mid-tier investors are often considered the most reactive to market changes.
More substantial investors, holding between 1,000 to 10,000 BTC, accumulated 80,544 coins valued at around $5.10 billion in the same timeframe.
The largest players in the Bitcoin market, managing wallets with 10,000 to 100,000 BTC, added a significant 91,732 coins to their portfolios, valued at approximately $5.80 billion.
The recent buying spree by the group of the largest BTC whales (the blue whales, maybe?) suggests market participants believe in Bitcoin as a store of value.
However, the buying spree by Bitcoin whales paints a pattern of significant stakeholders ‘buying the dip.’
Though the move could help cushion the market against further downturns and stabilize prices over time, a significant rally post-halving could result in some profit booking. Yet, it is likely that the selling pressure was more likely to come from the smaller fishes and maybe the sharks.
The contrast between the bearish sentiment in the Spot Bitcoin ETF markets, where demand has declined, and the bullish stance of Bitcoin whales is particularly notable.
Furthermore, these movements occur at a time when Bitcoin’s dominance in the cryptocurrency market has reached a three-year high, now representing nearly 55% of the total $2.4 trillion market cap of all virtual currencies.
Bitcoin Price In Holding Pattern Ahead Of Halving
Meanwhile, Bitcoin prices remained in a holding pattern following the recent market crash. The long lower wicks on the recent daily price candles highlight the presence of bulls in the market, yet the BTC price has not started a rally.
The price action suggests that traders are waiting for the halving event to have its impact on the market before entering it. Bulls fought back from a daily low near $61,650 on April 16 to close the day with 0.6% gains.
The rally seems to be continuing on April 17, with the token reaching a high near $64,370 after a 1.5% spike in prices.
The 20-day EMA (red wave) forms the first crucial resistance for the token near $67,000. Breaking and consolidating above the immediate resistance could help BTC’s price rally to the resistance near $71,250.
However, if the optimism of Bitcoin whales does not spread, BTC price could face a drop to the support near $61,500. A breach of the immediate support level would mean Bitcoin price testing the support near $57,400 before recovering.
The RSI for Bitcoin remained comfortably neutral at a score of 42.96, leaving bulls plenty of room to rally before the momentum oscillator becomes overbought.
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