Key Points
- Despite Bitcoin’s price volatility, whales continue to accumulate more BTC.
- However, selling sentiment remains dominant in the market, potentially indicating a price drop.
Despite the recent price fluctuations of Bitcoin (BTC), whales have been seizing the opportunity to accumulate more of the cryptocurrency.
BTC’s price managed to reach $70k a few days ago, but this trend was short-lived. As the price started to decrease, whales took the chance to buy more BTC at a lower price.
Whales Accumulate BTC
Data from CoinMarketCap showed a bullish momentum for BTC last week, which allowed it to touch $70k on 21 May. However, the price dropped again under $69k, which whales used as an opportunity to buy BTC at a lower price.
Ali, a known crypto-analyst, shared a tweet stating that BTC whales bought over 20,000 BTC, equivalent to $1.34 billion. Similarly, Abramchart, an analyst at CryptoQuant, shared an analysis showing a strong return of whales buying Bitcoin after a two-month decline since March. This suggests that the current prices are suitable for buying and accumulating BTC.
Selling Sentiment Remains Dominant
Despite the whales buying, the market seems to be dominated by selling sentiment. Data from CryptoQuant shows an increase in BTC’s exchange reserve, suggesting that retail investors might be selling BTC. Moreover, both BTC’s Korea Premium and Coinbase Premium were red, indicating a dominant selling sentiment among U.S and Korean investors.
While the accumulation from whales did help BTC, with the crypto climbing by 2.6% in the last 24 hours, it might not be enough to sustain this uptrend. BTC’s aSORP was red, indicating that more investors are selling at a profit, which can signal a market top in the middle of a bull market. Furthermore, its NULP suggested that investors are in a belief phase, where they are in a state of high unrealized profits – a bearish signal.
To understand whether BTC is expecting a price correction, AMBCrypto analyzed its daily chart. The analysis showed the possibility of a bearish crossover in the coming days according to BTC’s MACD. Its Chaikin Money Flow (CMF) also moved sideways near the neutral zone. Contrarily, the Money Flow Index (MFI) looked bullish as it registered a sharp uptick.
