Bitcoin [BTC] has significantly struggled to hold $60k. In fact, BTC has breached this key level daily for the past five days, with $59k acting as support.
At press time, Bitcoin traded at $60,352 after dropping slightly by 0.19% on the daily charts. With BTC barely holding at $60k, whales have taken the opportunity to accumulate.
Bitcoin whale scoops up $81M in BTC
Bitcoin whale activity has surged significantly over the past week, coinciding with extended market weakness.
In fact, CryptoQuant’s Spot Average Order Size data showed large whale orders over the past week. This implied that whales have been extremely active on the spot market, either buying or selling.
Whale orders have consistently appeared at the $59k and $60k price levels over the past five days. This makes this price range a key whale zone. Therefore, it seems these whales have been actively buying at these price levels. Notably, Exchange Netflow has only once turned positive in the past three weeks.
Over the past three days, Bitcoin Netflow has remained negative, currently at around -125 BTC. A sustained period of a negative Netflow suggests that active traders on the spot are mostly buying. This confirms that whales have been buying.
Lookonchain reported one such whale. According to the on-chain monitor, a newly created wallet withdrew 1,350 BTC worth $81.87 million from Binance.
With the whale deploying such massive capital during this period of weakness, it’s a major sign of growing optimism. For the investor, BTC may have already found its bottom and is likely to rebound in the near term.
Is the demand adequate to lift BTC?
Although whales have increased capital deployment over the past few days, the market has yet to respond positively. Since the market structure remains weak, with bearish dominance, momentum indicators still point to elevated downside momentum.
At the time of writing, Bitcoin’s SMI MFT remained negative, with SMI at -43. When this indicator sits deeply in the negative zone, it shows bearish momentum dominance.
Therefore, sellers have total control of the market. Often, such a momentum setup has preceded an extended price decline.
Thus, if the momentum remains, BTC will continue to struggle between $59k and $61k, range. However, if demand from whales finally materializes, it could push BTC to $64,500, paving the way for a clear rebound.
Final Summary
- A newly created whale wallet purchased 1,350 BTC worth $81.87 million on Binance.
- The Bitcoin [BTC] market remains relatively weak, with bears still in control, leaving whale demand insufficient.