Key Points
- During Bitcoin’s recent price correction, whales and institutions moved assets worth hundreds of millions.
- Bitcoin’s on-chain metrics and technical analysis suggest a potential upside rally.
After a significant rally, Bitcoin (BTC) experienced a substantial price correction. From 26th to 29th October, the cryptocurrency drew considerable attention due to its 11% price rally. However, this rally was short-lived.
Understanding the Price Correction
Investors and traders should note that a price correction after a significant rally can be a positive sign for the long term. It might support a potential price surge in the future. As such, this price correction might have been anticipated by some. During this correction, whales and institutions moved assets worth hundreds of millions.
Whale Activity Amid Price Correction
As per the blockchain-based transaction tracker Lookonchain, Mt. Gox’s wallet transferred 500 BTC worth approximately $35.04 million during the morning hours of the Asian trading session. Moreover, another whale purchased the dip, adding 550 BTC worth $38.68 million as the price fell to its critical support level.
According to a technical analysis, BTC seemed to be retesting its breakout level of $69,235 of the decline channel price action pattern at press time. If BTC maintains this level, it could potentially rally significantly in the upcoming days. Currently, BTC was trading above the 200 Exponential Moving Average (EMA) on the daily timeframe, indicating an asset trend on an uptrend. The Relative Strength Index (RSI) also suggested a potential upside rally.
Bitcoin’s positive outlook was further supported by its on-chain metrics. According to the on-chain analytics firm Coinglass, BTC’s Long/Short ratio had a press time value of 1.09, indicating strong bullish sentiment among traders. Additionally, Open Interest increased by 17%, indicating growing interest in the asset among traders.
