Bitcoin Whales Lose Interest, Is This A Precursor For A Crash To $50,000?

Share This Post

Movement and accumulation from crypto whales are two of the catalysts for Bitcoin price increases. Although major whales are still buying the dip, on-chain data indicates a general waning accumulation momentum which suggests their conviction might actually be waning. 

According to IntoTheBlock, an on-chain analytics firm, Bitcoin whale accumulation volumes have declined substantially in each buying cycle over the past month. This decline in whale accumulation could be worrying for investors, especially as the price of Bitcoin is now trying to hold above $60,000.

Whale Appetite For Bitcoin Dips According To On-Chain Data

Whales, or large investors holding over 1,000 BTC, have accumulated strongly since the beginning of the year, especially during market dips. This accumulation has largely helped to keep Bitcoin in bullish sentiment and prevented huge price declines. However, IntoTheBlock recently revealed an interesting pattern between these whale wallets in each accumulation phase. 

The largest accumulation occurred between March 5 and March 7, when these wallets acquired over 120,000 BTC. Every succeeding price dip has, however, seen less accumulation than the one before it. Particularly, Bitcoin’s recent dip to $56,000 failed to attract notable whale accumulation. This drop in buying and selling activity indicates whales may have lost some interest or appetite for accumulating more Bitcoin in the short term.

Precursor For A Crash To $50,000?

The waning conviction among Bitcoin whales has raised the question of whether Bitcoin could reverse back into a full bearish momentum. These concerns are particularly valid, considering some analysts are of the notion that Bitcoin might’ve reached its peak in this cycle. 

As IntoTheBlock noted, prices have increased shortly following every accumulation this year. While the lower whale buying activity could stall price increases in the short term, it is not a sure sign that Bitcoin is headed for a major price crash. However, if the trend continues for several more months, it could signal lower demand and a weakening bull market.

According to the “In/Out Of Money Metric”, there is still a strong resistance volume between $59,000 and $61,000. A drop below this range again would push 552,220 addresses into losses. In fact, while a drop to his level would be painful for many holders, most crypto analysts remain optimistic about Bitcoin’s long-term prospects. 

At the time of writing, Bitcoin is trading at $61,488. The crypto recently rebounded around $57,500 and is up by 7.4% in the past seven days. According to analyst Marco Johanning, $57,000 is an important support level for Bitcoin. He noted that while a break below $57,000 could lead to further declines into $52,000, the crypto market is still very bullish for Bitcoin.

Bitcoin price chart from Tradingview.com

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Red Alert: Crypto Markets Crumble as $1.18 Billion Vanishes in 24 Hours

The post Red Alert: Crypto Markets Crumble as $118 Billion Vanishes in 24 Hours appeared first on Coinpedia Fintech News Cryptocurrency markets are in the red today, with major coins experiencing

Robert Kiyosaki Warns of Bitcoin Crash as Trump’s Tariffs Take Effect—Plans to Buy the Dip

Robert Kiyosaki warns Trump’s tariffs could trigger a crash in bitcoin, gold, and silver—an opportunity, he says, to buy assets at bargain prices Robert Kiyosaki Reacts to

XRP Market Update: A Symphony of Bearish Signals Amplifies Downward Trajectory

On Feb 2, 2025, XRP oscillated at $257 to $261 over the last hour, its market valuation eclipsing $150 billion alongside a $1219 billion daily turnover Intraday fluctuations spanned $252 to $295 per

Latam Insights Encore: El Salvador Yields to IMF Pressure, Coinbase Lands in Argentina

Welcome to Latam Insights, a compendium of the most relevant crypto and economic news from Latin America over the past week In this week’s edition, El Salvador de-risks its economy from

Time to buy ETH? $200 Million Worth Ethereum Outflows

The post Time to buy ETH $200 Million Worth Ethereum Outflows appeared first on Coinpedia Fintech News Amid the notable price decline across the cryptocurrency market, Ethereum (ETH) has been making

Bitcoin Will Be ‘Worthless’ In 10 Years, Finance Nobel Prize Winner Says

People have always doubted Bitcoin, but when a Nobel Prize-winning economist said it will eventually fail, many paid attention Related Reading: Bitcoin Has No Place In EU Central Bank Reserves, ECB