Sunday, February 5, 2023

Bitcoin Whales Buying Dip Indicates Market Price Has Reached Near Bottom

Bitcoin Whales are active again!

One of the whales, who had dumped a major share of Bitcoin around an all-time high, has recently been seeing buying the digital assets again.

Whales movement in the market is the major indicator for market sentiments. Like Whales usually dump their cryptos when there is an anticipation of price fall and starts buying it again when they feel the market has reached the bottom. Therefore, the recent purchase of Bitcoin by Whales could be seen as a sign that the price of the digital asset is reaching its bottom.

In May 2021, Bitcoin experienced its first red monthly candle, as its price collapsed 50 percent from an all-time high position of $64,685. However, the world’s largest digital asset by trading volume has been trying to recover and from the past few weeks, it is consolidating under $40,000.

As per the market analysts, in near future, as soon as Bitcoin breaks the key resistance of $40,000, the market may experience a trend reversal. 

In April 2021, as Bitcoin reached its all-time high position in the market value, the market capitalization of the crypto market reached $2 trillion. But in the first week of May, the market lost almost half of its capitalization, due to correction. 

According to the analysts, for 5 months continuously the market remained bullish and in order to balance it the correction was important.

It is to be noted that every time the market has experienced a bullish momentum whether, in 2013 or 2017, it has been followed by pullbacks or corrections. 

In 2017, before experiencing a bull run, the market faced four major corrections and then experienced an upward trend of 40 percent. Recently when the market came down after an ATH, the market veterans remained calm, and are confident that the current market correct is not the price top for Bitcoin.

Apart from Whale, the market sell-off was also manipulated by the high leverage trading and several FUDs. Firstly, it happened because the owner of Tesla, Elon Musk, denied accepting the Bitcoin payment for the electric car. Then a few days later China banned the banks from offering their services to the crypto-related activities in the country. 

Many of the new traders, who had joined the market after it hit an all-time high, fell prey to this FUD, resulting to that, they started the panic sale of their crypto assets.

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Ethereum (ETH) $ 1,664.28
Tether (USDT) $ 1.00
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USD Coin (USDC) $ 1.00
XRP (XRP) $ 0.41008
Binance USD (BUSD) $ 1.00
Cardano (ADA) $ 0.397195
Dogecoin (DOGE) $ 0.094187
Polygon (MATIC) $ 1.25