Bitcoin Dips Below $43K, Whales Accumulate Amid Bearish Market
Bitcoin Drops Below $43,000 Again – What Are the Whales Doing?
Bitcoin has once again fallen below the $43,000 mark, prompting the so-called “whales” – large investors in the crypto field – to accumulate more coins.
Market Situation and Sentiment
Despite the efforts of the whales, the selling tendency in the broader market remained dominant. The market indicators for Bitcoin remained bearish. Bitcoin investors have not been able to make any gains in recent weeks as the leading cryptocurrency fell below $43,000. In addition, Bitcoin’s growth momentum has slowed down recently. The whales took this opportunity to accumulate more BTC. But will their actions be sufficient for BTC to regain its previous strength?
Bitcoin Slows Down
According to CoinMarketCap, BTC was slightly down in the last 24 hours. At the time of writing, the queen of cryptos was trading at $42,800.38, with a market capitalization of over $839 billion. Due to the sluggish price movement, the market sentiment around the coin also became bearish.
What the Data Shows
An analysis of data from CryptoQuant revealed that both the Coinbase premium and the Korea premium for BTC were in the negative. This suggests that the selling tendency among US and Korean investors was dominant at the current time.
Despite the positive trend of BTC, a popular crypto analyst, Crypto Tony, pointed out in a tweet that BTC is slowing down.
Whales Continue to Accumulate Coins
Although it may seem alarming that BTC has fallen below $43,000, the whales continue to accumulate more coins. On February 3, Santiment highlighted such an episode in a tweet. According to the tweet, the number of wallets with a balance between 1,000 and 10,000 BTC increased by 2.5% in just six days, which was the highest value since November 2022.
Will Bitcoin Change Its Course?
It is interesting to note that the whales were accumulating BTC while the miners were getting rid of the coin. A rapid sell-off of Bitcoin by miners has led to a notable reduction in reserves.
To see if the buying pressure from the whales would be sufficient to change BTC’s course, we looked at the daily chart. Our analysis revealed that both the Relative Strength Index (RSI) and the Money Flow Index (MFI) of Bitcoin were moving sideways. This suggests that the current quiet price action could last longer and investors would have to wait longer to see if BTC reaches new highs.
The current market conditions and the activities of the whales suggest that the future of Bitcoin is uncertain. Despite the accumulation of coins by the whales, the market sentiment remains bearish. It remains to be seen whether the buying pressure from the whales will be enough to cause a change in BTC’s course.
Sources: CoinMarketCap, CryptoQuant, Santiment, AMBCrypto.
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