- A cohort of BTC whales has continued to fill its coffers.
- This has happened despite the coin’s recent price action.
Bitcoin [BTC] whales have intensified accumulation despite the currency’s recent decline below $62,000.
According to on-chain data provider Santiment, BTC whales holding between 1,000 and 10,000 coins collected 15,121 BTC worth $930 million between May 7 and 8.
This pushed the cohort’s total BTC holdings to the highest level in 14 days.
🐳If #Bitcoin With the price tight between $61,000 and $64,000, large whales have made some accumulation moves over the past 24 hours. Wallets with 1K-10K $BTC have collectively amassed ~$941 million worth of coins, returning to their highest holding levels in two weeks. https://t.co/NkYwRsc8Pd pic.twitter.com/LWAt03TgUP
— Santiment (@santimentfeed) May 8, 2024
At the time of writing, this group of BTC investors owned 38% of the circulating supply of 20 million BTC of the coin.
BTC is dealing with bears
At the time of writing, BTC exchanged hands at $61,621. The coin has recently dipped below its 20-day simple moving average (SMA), putting it at risk of a further decline in the near term.
When an asset’s price falls below its twenty-day SMA, it indicates that the short-term trend for the asset is downward.
Market participants often take this as a sign that sellers are in control and that the price of the asset is likely to continue to decline.
Measurements of BTC’s price movements on a 1-day chart showed that the price fell below the 20-day SMA on May 7 and has witnessed a 3% decline in value since then.
Furthermore, the coin has seen a decline in demand among general market participants. A review of the key momentum indicators showed that they were below their respective midlines at the time of writing.
For example, the coin’s Relative Strength Index (RSI) was 44.12, while the Money Flow Index (MFI) was 23.21. At these values, the indicators showed significant bearish pressure on the market.
At the same time, the currency’s Chaikin Money Flow (CMF) was about to dip below the zero line. This indicator measures the flow of money into and out of the currency market.
A CMF value below zero indicates market weakness, indicating more liquidity coming from the market.
Source: BTC/USDT on TradingView
If the bears strengthen their position, they can pull the price of the coin towards the support line of BTC’s descending channel pattern.
Read Bitcoin’s [BTC] Price forecast 2024-25
If this happens, the top cryptocurrency asset will change hands in the $57,000 price region.
However, if this bearish projection is invalidated as bullish activity gains momentum, BTC’s price may move towards the pattern’s resistance line and attempt a crossover.