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Whales Spark Rebound With Massive $2.8 Billion Purchase


The past few weeks have been a rollercoaster ride for Bitcoin investors. Inflation fears and geopolitical tensions sent shockwaves through the cryptocurrency market, dragging Bitcoin and its altcoins to depths not seen since early 2024. Bitcoin, the world's leading cryptocurrency, fell to a low of $56,500 this week. , which is a far cry from her record. Highs of more than $70,000 in March.

However, amid the carnage, some analysts see signs of a possible recovery in the short term. This optimism stems from a combination of factors, including renewed accumulation by major investors, favorable technical indicators, and historical price patterns.

Whales Dive In: Buying Bitcoin's Dip

One of the most interesting developments is the recent buying spree by Bitcoin whales. These large-scale investors, with wallets containing large amounts of Bitcoin, have accumulated the digital currency at a rapid pace.

According to Ki Young Ju, founder of cryptocurrency analytics platform CryptoQuant, Bitcoin whales have amassed a staggering 47,500 BTC tokens, worth over $2.8 billion, in just 24 hours. This aggressive buying behavior indicates that these whales view the current price decline as a buying opportunity, a sentiment that is often interpreted as bullish for the market.

Technical indicators flash green

Technical analysts also examine on-chain data for clues about Bitcoin's future path. Dan, another analyst at CryptoQuant, focuses on the Output Spent Profit Ratio (SOPR) metric, which measures the profitability of Bitcoin transactions.

Total crypto market cap at $2.2 trillion. Chart: TradingView

When the SOPR indicator drops to the lower bound of the Bollinger Band – an indicator of volatility – it can indicate oversold conditions and a potential price recovery. According to Dan, this is exactly the scenario that is currently playing out, suggesting that Bitcoin may be poised to rally.

Cooling investor sentiment: a sign of things to come?

Another interesting observation comes from market intelligence platform IntoTheBlock (ITB). They noticed a significant decline in positive sentiment among investors during the recent correction. While a bearish outlook may seem like a negative sign, ITB sees this cooling-off period as a precursor to recovery.

Historically, periods of declining investor enthusiasm are often followed by renewed buying activity when the market finds its footing.

BTCUSD price action in the last 24 hours. Source: CoinMarketCap

Price action confirms analysts' expectations?

Interestingly, Bitcoin's price action seems to confirm these analysts' predictions. As of this writing, Bitcoin is trading at around $63,309, reflecting a 6.3% increase from the previous day's price. While this does not guarantee a sustainable uptrend, it does indicate that a short-term recovery may be underway.

Featured image from 15Five, chart from TradingView

The post Whales Spark Rebound With Massive $2.8 Billion Purchase first appeared on Investorempires.com.



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