- Although whales have been purchased, selling sentiment remains dominant in the market
- Few statistics and indicators also pointed to a drop in prices
Bitcoin [BTC] managed to regain $70,000 a few days ago, but the trend did not last as the price of the crypto soon started falling on the charts. While that was happening, whales took the opportunity to accumulate more BTC at a lower price. Ergo the question: does this point to another bull rally?
Bitcoin whales back in action
CoinMarketCaps facts revealed that BTC’s price gained bullish momentum last week, allowing it to touch $70,000 on May 21. However, the bulls couldn’t prime the pump, causing BTC to fall below $69,000 again. Whales took this opportunity to buy BTC while the price was low.
Ali, a popular crypto analyst, even recently shared one tweet highlighting the fact that BTC whales have purchased over 20,000 BTC – worth $1.34 billion.
Abramchart, an analyst and author at CryptoQuant, also shared one analysis that painted a similar picture. According to the same, the whales’ interest in buying Bitcoin has returned sharply after a two-month decline in buying interest since March. This development indicated that BTC’s current prices are suitable for purchase and accumulation.
AMBCrypto then checked CryptoQuant’s facts to find out whether buying sentiment was dominant in the market overall. We found that while whales were buying, retail investors may have been selling BTC as the currency’s exchange reserve increased. Apart from that, both Korea Premium and Coinbase Premium of BTC were red. This clearly meant that selling sentiment was dominant among US and Korean investors.
Source: CryptoQuant
Will Whales Push Bitcoin Up?
The accumulation of whales has helped BTC as the crypto is up 2.6% over the past 24 hours. At the time of writing, Bitcoin was trading at $68,797.25 with a market cap of over $1.36 trillion.
However, the whales’ efforts may not be enough to support this upward trend. BTC’s aSORP was red, meaning more investors are selling at a profit. In the middle of a bull market, this could indicate a market top. Furthermore, the NULP suggested that investors are now in a belief phase where they are in a state of high unrealized gains – a bearish signal.
Source: CryptoQuant
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To better understand whether BTC is expecting a price correction, AMBCrypto analyzed its daily chart.
According to our analysis, BTC’s MACD showed the possibility of a bearish crossover in the coming days. The Chaikin Money Flow (CMF) also moved sideways near the neutral zone.
On the contrary, the Money Flow Index (MFI) looked optimistic and recorded a sharp increase.
Source: TradingView