Movement and accumulation of crypto whales are two of them Catalysts for Bitcoin price increases. Although large whales are still buy the dipData across the chain indicates an overall declining accumulation momentum, suggesting that their belief is actually waning.
According to IntoTheBlock, an on-chain analytics firm, Bitcoin whales accumulation volumes have fallen significantly in each buying cycle over the past month. This decrease in the accumulation of whales could be worrying for investorsespecially as the price of Bitcoin is now trying to stay above $60,000.
Whale’s lust for Bitcoin dips according to on-chain data
Whales, or large investors who own more than 1,000 BTC, have surged since the start of the year, especially during market dips. This accumulation has largely helped keep Bitcoin in bullish sentiment and prevented massive price drops. However, IntoTheBlock recently revealed an interesting pattern between these whale portfolios at each accumulation stage.
The largest accumulation occurred between March 5 and 7, when these wallets acquired more than 120,000 BTC. However, with each subsequent price dip there has been less accumulation than the previous one. In particular, Bitcoin’s recent dip to $56,000 has not seen any significant whale accumulation. This drop in buying and selling activity indicates that whales may have lost some interest or appetite for accumulating more Bitcoin in the short term.
Whales are buying the dip, but is their conviction waning?
🛍️Addresses holding more than 1000 BTC have piled up heavily in recent months, especially during dips.
📈Prices have increased shortly after each accumulation.
However, keep in mind that any peak in accumulation due to… pic.twitter.com/OkbekJr5NC
— IntoTheBlock (@intotheblock) May 6, 2024
Precursor to a crash to $50,000?
The waning conviction among Bitcoin whales has raised the question of whether Bitcoin could return to a completely bearish momentum. These concerns are particularly valid, as some analysts believe that Bitcoin may have reached its peak in this cycle.
As IntoTheBlock noted, prices have risen shortly after each accumulation this year. While the lower whale buying activity could slow price increases in the short term, it is not a sure sign that Bitcoin is headed for a major price crash. However, if the trend continues for several more months, it could indicate lower demand and a weakening bull market.
According to the “In/Out Of Money Metric”, there is still strong resistance volume between $59,000 and $61,000. A drop below this range would again lead to a loss of 552,220 addresses. While a drop to its level would be painful for many holders, most crypto analysts remain optimistic about Bitcoin long-term prospects.
At the time of writing, Bitcoin is trading at $61,488. The crypto recently recovered around $57,500 and is up 7.4% over the past seven days. According to analyst Marco Johanning, $57,000 is an important level of support for Bitcoin. He noted that while a break below $57,000 could lead to a further decline to $52,000, the crypto market is still very bullish for Bitcoin.
BTC price struggles to hold $61,000 support | Source: BTCUSD on Tradingview.com
Featured image of FameEX, chart from Tradingview.com
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