Crypto Whales Buy the Dip: 13,010 BTC Acquired During Bitcoin’s Dip to $40,555

Three Events Bound to Shake the Crypto Market and Usher in Mammoth Whales Come August

During the recent market downturn, Bitcoin (BTC) faced a significant drop, plummeting to $40,555 from its recent high of $44,700 recorded on December 8. However, amidst this dip, on-chain data revealed a notable move by institutional investors who capitalized on the price drop, acquiring a substantial 13,010 BTC, equating to approximately $533 million.

The decline in Bitcoin’s value on Wednesday, attributed to subdued inflation figures from the November U.S. CPI report, prompted a response across markets. Despite this setback, large institutional investors, often referred to as “whales,” displayed significant confidence in the cryptocurrency.

Insights from IntoTheBlock revealed a marked increase in the net flow of BTC among these significant holders during the week’s downturn. The trend pointed to a strategic move by these major players who began accumulating Bitcoin as its price started sliding earlier in the week.

Source: IntoTheBlock

The acquisition of 13,010 BTC amid the price drop, valued at an average of $41,000, signifies a substantial investment of $533 million in just three days. This bullish move by institutional investors has historically impacted cryptocurrency prices in several ways.

Primarily, when large entities like these whales rapidly purchase substantial quantities of BTC, it often absorbs excess supply in the market. This buying activity also injects much-needed liquidity, allowing sellers to execute trades more favourably.

Additionally, such large-scale investments from influential investors often generate positive momentum within the crypto ecosystem. This collective buying pressure tends to sway market sentiment towards optimism and could pave the way for an eventual upward trend in Bitcoin’s price.

Whale moves: 4 transactions of 2500 Bitcoin each totalling 9600 bought on @coinbase Prime at $41025- and sent to wallet 1CiAnT – the bag is currently just sitting there. I have an alert on it and will update.

— MartyParty (@martypartymusic) December 12, 2023

Forecasts: Bullish Momentum and Potential Obstacles

Predictions lean toward Bitcoin reclaiming the $45,000 mark in the short term. Insights suggest that corporate investors are actively accumulating BTC in anticipation of the impending approval of a Bitcoin Spot Exchange-Traded Fund (ETF). Unless significant obstacles hinder the ETF approval process, the momentum is poised to remain in favor of the bulls.

However, analysts and on-chain data suggest that Bitcoin might face notable resistance around the $43,500 mark in its upward trajectory. The data also highlights potential support and resistance areas based on current BTC holders’ average entry prices.

Source: IntoTheBlock

The situation remains fluid, where the bears might exert influence if Bitcoin dips below the psychological support level of $40,000. Nevertheless, anticipating a Spot ETF approval in the coming months could steer the market’s direction and defend critical support levels.

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