The price of Bitcoin (BTC) fell sharply by 10% in a single day on September 4th. After the crash, sentiment on the index cryptocurrency market became particularly cautious. Cryptocurrency fear greed shows “Angst” for the first time since July.
Bulk Bitcoin Buy Order at $ 8,800 at Bitfinex. Source: Cole Garner
However, market data shows this Whales are preparing to buy Bitcoin for $ 8,800. Indicates a decline similar to March 13th is unlikely. when BTC fell to just $ 3,600.
Why did Bitcoin fall and why are the whales still pushing?
Analysts largely attribute Bitcoin corrections to miners’ sell-offs. Before the crash, the analysis company CryptoQuant noted that Mining pools moved to sell BTC.
After tracking the outflows of large pools, the data showed that miners were transferring unusually large amounts of Bitcoin to exchanges. Shortly thereafter, Bitcoin price began to fall, and Eventually fell to less than $ 10,000. Researcher they said::
“Miners have been moving unusually large amounts of #BTC since yesterday. #Poolin, #Slush, #HaoBTC have taken the bitcoins out of their wallets and sent some to the exchanges. “
When Bitcoin’s trend changes initially, it tends to extend to the furthest level of support or resistance. For example, on March 13, BTC quickly plummeted to just $ 3,600 before bouncing off a significant bounce. From April to September Bitcoin rose from $ 3,600 to over $ 12,000.
As such heThe whales could wait for Bitcoin to drop to lower support levelswhich contain $ 8,800.
“Nice to see you again, Bitfinex whale”, commented today the on-chain analyst Cole Garner. “Smart Money has offers of $ 8,800. I hope the fund is there. ”
The data could indicate that whales are expecting a major retreat in the near future. But it also shows that they are not expecting a massive correction from previous Bitcoin pullbacks.
Since March, the price of BTC has increased 247%, so eIt is likely that a correction came as no surprise to many traders. As reported today Raoul Pal, CEO of Global macro investorsaid 25% to 40% pullbacks in a bull market are typical of Bitcoin.
“In post-halving bull cycles, Bitcoin can often correct 25% (even more than 40% in 2017), throw traders short (or give swing traders a shot on the short side). Each of them was an opportunity to buy. Is there a DCA opportunity ahead of us?
What about BTC next?
The whale data provider Whale map said that many of the so-called “HODLers”in panic, sold bitcoin when it fell. BTC’s swift retreat could have taken investors by surprise given the intensity of the decline. Whale map he showed::
“HODLers, who were fairly successful in making higher purchases yesterday, panicked a lot yesterday. His strategy seems to be buy high, sell low. “
Yesterday’s correction was a combination of whales making profit and investors panicking to sell, and that could increase the likelihood of lower volatility in the short term.
Map of the whales selling and buying BTC. Source: Whale map
Short term, Michael van de Poppe, a full-time trader on the Amsterdam Stock Exchange, said that Bitcoin may be approaching a bottom formation. Van de Poppe, who was waiting for a phase of consolidation, said this decline in markets may not mark the end of the current “high season”. Commented::
“In my opinion, in those regions that are converging with the CME gap, we are on the verge of bottoming out at $ BTC. Trade is actively recovering as an HL needs to build to confirm support. The crazy changing season lasts for months. “