The whales’ activities on the Bitcoin network have surged to a four-month high as large holders continue buying the dip. This is coming at a time when the flagship cryptocurrency is steadily declining as it closes in on the critical support of $20,000.
According to the data provided by IntoTheBlock, the analytic firm has tracked funds moving to wallet addresses belonging to BTC whales. The largest asset inflows that occurred in February this year were tracked. The whales moved 116,000 BTC tokens worth $2.5 billion in one day.
Bitcoin Price is About to Go Bottom
The further insight provided by IntoTheBlock shows that the fund’s movement may signal the potential bottom of the price of Bitcoin. The large addresses always appear to buy in a period of market corrections.
Recently, the price of Bitcoin has dropped amid the broader crypto market slump as the industry’s capitalization dropped further. The data from CryptoCompare reveals that the price of Bitcoin has already tested the $20,000 level before surging to $21,000.
Meanwhile, the price of Bitcoin at the time of writing has dropped 2.4% over the past 24 hours. Bitcoin currently trades at $20,600 as the $20,000 mark is a critical support level the same way it was during the last bull run in 2017.
The crypto influencer @rovercrc posted on his Twitter account where he indicated that Bitcoin whales in strength and buy when the token is in weakness. The influencer further revealed that the number of BTC addresses with more than 10,000 BTC has increased as the price plunges.
— Crypto Rover (@rovercrc) June 15, 2022
It is worth noting that the Bitcoin price has jumped back to more than $21,000, even though the current market sentiment is still bearish.
Bloomberg’s Mike McGlone believes that the price of Bitcoin reaching $20,000 is no different from $5,000. Bloomberg’s commodity strategist opined that this compared to the early days of Bitcoin adoption and the current diminishing supply.
McGlone added that it is natural for the price of Bitcoin to attain such a level as this shows the status of the token over others. As the best-performing cryptocurrency, Bitcoin seems to be at its most vulnerable following the broader crypto market collapse
Bitcoin Whales now More Bullish
The recent whale activities show large holders’ new outlook for the flagship cryptocurrency, unlike before. The number of whales on the Bitcoin network is down by 5% in April, suggesting a likely price decline.
In addition, on April 4, about 16 whales left the Bitcoin network completely or temporarily within the same week. Amid the mass outflow of funds, the BTC coins lacked the support of their large holders, which is critical for triggering an upward price trend.
Meanwhile, the current turn of events is an indication that the whales are giving their support to Bitcoin despite the entire market situation. More support from the BTC whales could be the difference as the token attempts to pull itself out of the market storm.