A new crypto wallet has just withdrawn 2,156 Bitcoin from Binance, worth around 151.21 million. This is a movement in a wider trend of a single whale that has now withdrawn almost 2,786 Bitcoin out of the exchange, with a total market worth of 195.39 million.
Just hours before this significant transaction, the same whale withdrew another 630 Bitcoin, valued at 44.31 million dollars. Analysts are closely following these transfers because they usually indicate a change in market dynamics whereby those with large stakes in markets transfer their assets to private wallets and do not leave them in exchanges to sell them.
Whale Accumulation Amid Market Panic
Particularly noteworthy is the timing of these massive withdrawals, which coincided with a period of panic in investor psychology. The Crypto Fear and Greed Index has fallen to the extreme fear area and is now between 6 and 10.
This phenomenon has been the case historically: when the overall market is experiencing high levels of anxiety, retail traders will sell their positions in fear of losing further.
However, the statistics show that institutional investors and whales typically capitalize on these crisis moments to purchase assets at a reduced price. This particular investor is demonstrating long-term confidence by transferring almost $200 million worth of Bitcoin out of Binance, which directly contrasts with the widespread fear among the masses.
Bitcoin’s Technical Levels and Recent Price Action
Bitcoin is now recording a vigorous recovery following a highly volatile drop. The price fell as low as $59500 around 3 days ago; however, it currently has been on a big 17% rise in only two days. According to the last reports, the current market price of Bitcoin is $70,400.
The technical analysts are closely monitoring the two vital levels that will define how the market moves in the short term. The support level is at the level of $67,000, which is the level at which buyers have intervened in the past to absorb the selling pressure on shorter time frames.
On the other hand, the major resistance level is at $74,000. To maintain its positive trend and achieve a complete turnaround, Bitcoin must cross above the resistance level of $74,000 and stabilize there.
The Shift Toward Personal Wallets
When Bitcoin leaves the high volumes of an exchange like Binance, it reduces the available supply. This is typically taken as a positive sign by the market since it implies that the owner of the asset is not planning to sell his assets soon.
Price increases can become much sharper with the increase in demand, with more of the supply stashed in personal wallets. This supply shock is one of the main reasons why many analysts think the current accumulation cycle may result in a huge breakout if the resistance levels are broken.
What This Means for the Near Future
The comparison of the fear on the market and the big purchases of the whales implies a classic market divergence.
Even though the technical indicators indicate that the next significant resistance is at the $74,000 resistance point, the on-chain data indicate that most of the participants with the largest funds to spend are not waiting until a breakout to make purchases. They are now buying the dips as well.
To the common investor, it is one of the lessons that, to a significant extent, market sentiment is a trailing indicator. Large players are enhancing infrastructure and preparing for the next phase of the Bitcoin market cycle.
from Crypto News: Bitcoin, Ethereum & Price Data | BlockchainReporter https://ift.tt/Z0aj38y
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