Big investors have been buying up big quantities of bitcoin again even as bitcoin’s price has been struggling for months. Whales also accumulated approximately 62,000 BTC in March, signaling that perhaps they contemplate the market has recovered already.
After hitting an all time high of $109,000 in January, Bitcoin’s price has since dropped by more than 29% with a low of $81,000. Being so high made many traders worried that this would be a bear market (a period of falling prices). But Bitcoin moved back above $85,000 and analysts are now waiting to see whether it can break $88,000. However, if it does, it will take Bitcoin up even further.
The weak demand on Bitcoin was proved by almost a year-long period when whales were selling it. However, the sluggishness reversed the trend they had been on since March. These large holders frequently set long term prices, hence this matter is important. This renewed interest in Bitcoin is a sign of confidence in the bitcoin growth in the future.
However, although this is a positive sign, Bitcoin’s price is still not out of danger. The pressure continues to create economic uncertainty, fears of a trade war and stock market volatility. Further drop should occur if Bitcoin falls below $85,000. However, if it blows through key levels of resistance, then a new uptrend may be in the cards.
The next couple of weeks are critical. In this case, with whales buying and Bitcoin strong, a recovery could be underway. But, if the selling pressure persists, the downtrend could stay on. The market will do well for investors to pay close attention to it and see what comes next.
Also read: Kraken Nears $1.5B NinjaTrader Acquisition to Expand in U.S. Crypto Futures
