Analysts: Bitcoin ‘whale’ behaviour that preceded April’s $64,000 high is back

CryptoSlate

Holders of massive amounts of Bitcoin (BTC) are continuing to buy the asset regardless of the recent dip in crypto markets, data from several sources shows. 

Some analysts say such investment behavior is what precedes bull runs, hinting that another may be on the cards in the next few months.

How To Get Free Crypto  

Such holders—colloquially known as ‘whales’ in financial circles; they hold over $50 million worth of the asset—increased their holdings throughout June to August, as per a recent report.

What are Bitcoin whales doing?

Data from on-chain analytics firm Chainalysis shows ‘whales’ accounted for over $10 billion worth of Bitcoin purchases from late June to late August. Part of that came from business analytics firm MicroStrategy, which, starting last year, has accumulated billions of dollars worth of Bitcoin as part of its treasury assets.

The last time such large-scale accumulation occurred was during the run-up to Bitcoin’s all-time high of $64,000, which it hit in mid-April 2021, the report stated. The asset reached a market cap of over $1 trillion at the time, before crashing to as low as $28,000 in the months afterward.

Bitcoin has since recovered and crossed $50,000 earlier this week (before again falling by $3,000 in the past few days). But market analysts are unfazed regardless of the moves: “Support is nearby according to technical charts,” noted Alexandra Clark, a sales trader at UK digital asset broker GlobalBlock. She added:

Coinbase Banner  

“Bitcoin’s simple and exponential moving averages give strong buy signals… Not only that but MicroStrategy continues to grow its Bitcoin portfolio – this support could stabilize the pullback and maintain the breakout move above $45,000.”

Daniela Hathorn, a market analyst at foreign exchange firm DailyFX, shared the sentiment: “The positive trend isn’t in any trouble as long as bitcoin stays above its 200-day moving average at $45,750,” Hathorn said, adding that a ‘key challenge’ for buyers was to sail through the $55,000 price level.

Meanwhile, while the sentiment remains bullish, Bitcoin has put up another stomach-churning drop. It fell nearly $2,000 in the wee hours last night, showing why the asset remains one of the most volatile financial instruments to bet on.

Get an edge on the cryptoasset market

Access more crypto insights and context in every article as a paid member of CryptoSlate Edge.

On-chain analysis

Price snapshots

More context

Join now for $19/month Explore all benefits

Like what you see? Subscribe for updates.

Go to Source
Author: Shaurya Malwa


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.