Since falling below $80k, Bitcoin has traded within a descending channel, touching a low of $74k, before a slight rebound.
At press time, Bitcoin traded at $75,882, down 1.65% on the daily charts. With the continued decline, BTC fell below both the EMA and the MA at $77k and $76k, respectively, reflecting strong downward pressure.
Bitcoin whale purchased $66 million in BTC
With Bitcoin [BTC] under intense downward pressure, some whales have taken the opportunity to accumulate at a discount.
According to Onchain Lens, a whale purchased 873.29 BTC worth $66.24 million from OKX. With the latest purchase, the wallet now holds 881 BTC, worth approximately $66.73 million.
The whale’s buying despite market conditions signals confidence in the market and anticipation of another leg up. In fact, it seems that most active whales in the market feel the same and have significantly reduced sell-side activity.
Bitcoin’s Exchange Whale Ratio declined to a two-week low of 0.511. A low Whale Exchange Ratio suggests that whale inflows have declined, historically, a bullish signal for BTC.
Why is BTC struggling, though?
Despite reduced sell-side activity among whales, BTC has struggled significantly. While high-net-worth investors are not selling, other market participants remain extremely active on the sell side.
This is because the Exchange Supply Ratio has continued to rise, jumping to a monthly high of 0.133. When ESR jumps to such levels, it suggests that sellers are overly active in the market.
In this case, small-scale investors have reduced market exposure during this period of weakness. As a result, the momentum has continually weakened.
Is the whale demand enough
Although whales are buying, other market participants are selling as well. Thus, the whale demand has failed to absorb pressure arising from other market participants.
Looking at the Bitcoin MACD+RSI indicator, it suggests that bullish momentum has continued to fade while the bearish trend has strengthened.
With MACD at -385 and Histogram at -418, this suggests bearish expansion. Thus, the downward pressure remains extremely high compared to the upside.
This suggests that whales’ attempt to absorb the pressure has failed, and their demand remains insufficient to inspire another leg up.
Therefore, for a trend reversal, the market needs increased buy-side activity. In doing so, demand can absorb the pressure and ensure a daily close above $ 77,839.
However, if prevailing market conditions persist, we could see another drop below $74k, towards $73,700.
Final Summary
- A Bitcoin whale purchased 873.29 BTC worth $66.24 million, rising holdings to 881 BTC.
- Bitcoin [BTC] faces strong bearish pressure, and could drop below $74k again if market conditions persist.