On-chain data shows ‘whales’ are accumulating Bitcoin despite fearful markets | CryptoSlate


Bitcoin (BTC) recently went through one of the steepest corrections seen since the beginning of the year. 

After rising to a new all-time high of nearly $65,000 on April 14, the world’s largest cryptocurrency by market cap took a 7.50% nosedive. But the losses accelerated quickly on Apr. 18 after a power outage in Xinjiang, China, forced many Bitcoin miners to shut down. 

Bitcoin’s market value plunged by 16.70% to hit a month-low of $50,050 as the network’s hashrate fell by half. Data from Bybt shows that $4.87 billion worth of long BTC positions were liquidated across the board due to the sudden downswing. 

How To Get Free Crypto  

While cryptocurrency enthusiasts trembled with fear, large investors took advantage of the price action to buy the asset at a discount. Bitcoin’s supply distribution chart shows a that addresses with millions of dollars worth of this cryptocurrency, colloquially known as “whales,” surge while prices dropped. 

Roughly 16 new whales holding 100 to 10,000 Bitcoin have joined the network within such a short period.

BTC Supply Distribution by Santiment

The recent increase in the number of Bitcoin whales may seem insignificant at first glance. However, when considering that these high-net-worth individuals hold between $5.40 million and $540 million in BTC, the sudden spike in buying pressure can translate into millions of dollars.

Bitcoin faces stiff resistance

IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model reveals that Bitcoin faces strong resistance ahead. Based on this fundamental indicator, over 1.38 million addresses bought more than 800,000 BTC between $54,250 and $55,150. 

As such, further price recovery may prove challenging. Only a daily candlestick close above this supply barrier can serve as confirmation of further gains. 

Coinbase Banner  

In/Out of the Money Around Price by IntoTheBlock

If Bitcoin fails to move past the overhead resistance, a rejection could materialize. The IOMAP cohorts show that another spike in selling pressure could push Bitcoin toward the next crucial demand barrier at $50,000. Here, roughly 560,000 addresses are holding over 366,000 BTC. 

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: Ali Martinez

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.