Key Points
- Despite Bitcoin’s recent price decline, whales holding between 1000 and 10,000 coins have increased their holdings.
- Bitcoin’s price fell below its 20-day simple moving average (SMA), suggesting a potential further decline.
Bitcoin whales, or investors holding large amounts of the cryptocurrency, have continued to accumulate more Bitcoin, regardless of its recent price drop below $62,000.
Data from on-chain data provider Santiment revealed that between May 7th and 8th, these whales purchased an additional 15,121 BTC, worth approximately $930 million.
Bitcoin Whales and Market Movements
This increase brought the total Bitcoin holdings of this group to its highest level in two weeks. As of now, these investors hold 38% of Bitcoin’s circulating supply of 20 million BTC.
The price of Bitcoin was $61,621 at the time of reporting. The coin’s price recently dropped below its 20-day SMA, indicating a potential for further decline.
When an asset’s price drops below its 20-day SMA, it is often seen as a sign that the asset is in a downward trend and that sellers have control.
Bitcoin’s price fell below its 20-day SMA on May 7th and has since seen a 3% decrease in value.
Indicators of Bearish Pressure
Furthermore, there has been a decrease in demand for the coin among general market participants. Key momentum indicators, such as the Relative Strength Index (RSI) and the Money Flow Index (MFI), were below their respective center lines, indicating significant bearish pressure.
The Chaikin Money Flow (CMF), an indicator that measures the flow of money into and out of the market, was also nearing the zero line. A CMF value below zero suggests market weakness and potential increased liquidity exit.
If bearish activity strengthens, the price of Bitcoin could drop to the support line of its descending channel pattern, potentially reaching the $57,000 price region.
However, if bullish activity increases and invalidates this projection, the price of Bitcoin could rally towards the pattern’s resistance line.
