Categories: Bitcoin Latest News

Bitcoin Whales Lose Interest, Is This A Precursor For A Crash To $50,000?

Movement and accumulation from crypto whales are two of the catalysts for Bitcoin price increases. Although major whales are still buying the dip, on-chain data indicates a general waning accumulation momentum which suggests their conviction might actually be waning. 

According to IntoTheBlock, an on-chain analytics firm, Bitcoin whale accumulation volumes have declined substantially in each buying cycle over the past month. This decline in whale accumulation could be worrying for investors, especially as the price of Bitcoin is now trying to hold above $60,000.

Whale Appetite For Bitcoin Dips According To On-Chain Data

Whales, or large investors holding over 1,000 BTC, have accumulated strongly since the beginning of the year, especially during market dips. This accumulation has largely helped to keep Bitcoin in bullish sentiment and prevented huge price declines. However, IntoTheBlock recently revealed an interesting pattern between these whale wallets in each accumulation phase. 

The largest accumulation occurred between March 5 and March 7, when these wallets acquired over 120,000 BTC. Every succeeding price dip has, however, seen less accumulation than the one before it. Particularly, Bitcoin’s recent dip to $56,000 failed to attract notable whale accumulation. This drop in buying and selling activity indicates whales may have lost some interest or appetite for accumulating more Bitcoin in the short term.

Whales are buying the dip, but is their conviction dwindling?

Addresses holding over 1000 BTC have accumulated strongly in recent months, especially during dips.

Prices have increased shortly following every accumulation.

However, note that each spike in accumulation by… pic.twitter.com/OkbekJr5NC

— IntoTheBlock (@intotheblock) May 6, 2024

Precursor For A Crash To $50,000?

The waning conviction among Bitcoin whales has raised the question of whether Bitcoin could reverse back into a full bearish momentum. These concerns are particularly valid, considering some analysts are of the notion that Bitcoin might’ve reached its peak in this cycle. 

As IntoTheBlock noted, prices have increased shortly following every accumulation this year. While the lower whale buying activity could stall price increases in the short term, it is not a sure sign that Bitcoin is headed for a major price crash. However, if the trend continues for several more months, it could signal lower demand and a weakening bull market.

According to the “In/Out Of Money Metric”, there is still a strong resistance volume between $59,000 and $61,000. A drop below this range again would push 552,220 addresses into losses. In fact, while a drop to his level would be painful for many holders, most crypto analysts remain optimistic about Bitcoin’s long-term prospects. 

At the time of writing, Bitcoin is trading at $61,488. The crypto recently rebounded around $57,500 and is up by 7.4% in the past seven days. According to analyst Marco Johanning, $57,000 is an important support level for Bitcoin. He noted that while a break below $57,000 could lead to further declines into $52,000, the crypto market is still very bullish for Bitcoin.

[#item_full_content]NewsBTCRead More

Recent Posts

Is The Bitcoin Bull Run Over? Fed Chair Powell Just Killed QE Hopes

In his testimony on Tuesday, Federal Reserve Chair Jerome Powell dampened hopes for another round…

1 hour ago

Bitcoin Banks: We Should Build Them Ourselves

Bitcoin banks are going to happen. We already have a few of them. We’re going…

3 hours ago

Did A Massive Bitcoin And Ethereum Sell-Off By Binance Trigger The Market Crash? Crypto Exchange Responds

There have been recent concerns within the crypto community regarding Binance’s recent activities after a…

4 hours ago

Bitcoin In The Spotlight As World Liberty Financial Debuts Strategic Reserve

By launching its Macro Strategic Reserve, World Liberty Financial (WLFI) has advanced significantly and strengthened…

5 hours ago

Bitcoin Finds Price Stability: Reclaiming $101,000 Depends On This Level

Bitcoin (BTC) continues to move within its one-week range after recovering from its recent drop…

6 hours ago

US to Release Jailed BTC-e Operator Vinnik in Russia Prisoner Swap

Alexander Vinnik, the jailed former operator of once mighty bitcoin exchange BTC-e, is being released…

7 hours ago