Bitcoin
Bitcoin Whales Raise $636 Million in a Single Day, What’s Next?
In a dramatic display of market activity, Bitcoin (BTC) whales raised a staggering $636 million worth of BTC on Tuesday, May 21st. This increase in whale activity was observed during Bitcoin’s price rally beyond $71,500. The potential reason behind this accumulation could be the Fear of Missing Out (FOMO) due to the growing optimism surrounding BTC’s future trajectory.
Bitcoin Whales Accumulate Huge BTC Stockpile
Thomas Fahrer, co-founder of Apollo, a provider of Bitcoin insights, highlighted this development in a post on X. Furthermore, the snapshot shared by him showed that the latest surge in whale buying totaled 8,958 BTC in a single day. Additionally, over the past seven days, whales have added a total of 12,058 BTC to their holdings.
This reserve equates to a hefty US$840.32 million based on Bitcoin’s current market price. This accumulation frenzy has been driven by FOMO as traders and investors scramble to secure their positions amid Bitcoin’s volatile price movements.
However, despite this substantial whale activity, the price of BTC underwent a correction, falling to the $69,000 level. This decline has raised questions about the near-term trajectory of the oldest crypto. Previously, Bitcoin price potentially rose due to positive news surrounding Ethereum ETFs as the SEC urged issuers to file amended 19b-4 filings.
On the other hand, analysts remain optimistic about the Bitcoin price trajectory due to technical indicators. Furthermore, the robust Spot Bitcoin ETF the entries also positively impacted market dynamics. On Tuesday, Bitcoin ETFs saw a phenomenal inflow of $305.7 million, with BlackRock’s IBIT taking the lead.
Furthermore, a considerable portion of whale purchases have come from these ETFs since their launch in January 2024. Consequently, analysts have called for more positive flows so that BTC price can reach new highs. Additionally, any positive news surrounding Bitcoin could also act as a catalyst.
Read too: No FOMO, Bitcoin (BTC) Price Consolidation Will Continue for a Few Weeks
Will BTC Price Recover?
Bitcoin price extended to the $69,000 level today and maintained the downtrend for a while. However, a huge recovery was witnessed as it surpassed $70,000 despite remaining in the red. At the time of writing, the BTC Price fell 1.10% to $70,098.61 on Wednesday, May 22.
Furthermore, the crypto had a massive market valuation of $1.38 trillion. Meanwhile, trading volume plummeted 25.44% to US$39.72 billion. Additionally, Ali Martinez, a prominent crypto analyst, weighed in on the situation.
In a post on X, he highlighted the importance of TD Sequential, a technical analysis indicator known for predicting market turning points. “TD Sequential accurately predicted #Bitcoin price action on the one-hour chart. Now, it presents a buy signal, anticipating the recovery of $BTC!”
Martinez’s analysis suggests that despite the recent drop, Bitcoin may be poised for a recovery based on this buy signal. Furthermore, this recovery trend has already been witnessed. The TD Sequential indicator is a popular tool among traders for identifying potential trend reversals and price movements. A buy signal on this indicator often leads to increased market confidence, potentially pushing prices higher.
Read too: Bitcoin Price Analysis: Two Key Factors That Pushed Bitcoin to $100,000 in 2024