Compass Investments

– Bitcoin: Will increased activity from “whales” help VTS regain the $70k mark?

After falling from the $72k level, Bitcoin has seen a noticeable correction, dropping to a low of $68,110. At the time of publication, Bitcoin [BTC] was quoted at $68,705, down 2.93% over the past 24 hours, reflecting the prevailing risk sentiment in the market.

BTC fell below its short-term moving averages – 20- and 50-day EMAs, signaling a pronounced selling pressure.

Bitcoin’s drop below $70k triggered the return of fresh entrants to the market, especially the big players, called whales, to replenish stocks.

According to Onchain Lens, a newly created wallet withdrew 340 BTC, equivalent to $23.14 million, from Binance. Typically, the accumulation of assets by a large investor during a price downturn indicates their optimism about the market’s prospects. In the futures market, large holders are also anticipating a recovery from the recent downturn. Lookonchain reports that one of the whales has switched from short to long BTC positions.

The whale opened a 40x leveraged long on 439.92 BTC worth $30.23 million. This switch from short to long indicates bullish sentiment; these investors will likely be able to capitalize further as the market rebounds.

In addition to these two major players, wealthy investors are actively building up their portfolios, as evidenced by Checkonchain data: mega whales and sharks are increasing their buying pressure.

The change in MegaWhales’ exchange balance reached 20.7 thousand BTC at the moment of analysis, while Sharks’ balance increased to 60.9 thousand BTC. Such a rise indicates the resumption of accumulation among this group, which reflects a change in market sentiment.

Historically, steady capital inflows from significant buyers have strengthened the market, setting the stage for further growth.

Can demand push BTC up?

These whales are showing persistence in holding their positions despite the overall market situation, but their aggregate demand is still insufficient. In addition, the downtrend continues, indicating significant pressure from other market players.

Looking at the MACD, the momentum indicator remains in the negative zone at -162 at the time of publication. A negative MACD signals that the selling pressure is significantly overpowering the buying pressure.

A prolonged stay in this area additionally weakens the market positions, foreshadowing a possible further decline in quotations. Hence, if the current market conditions persist despite whale purchases, BTC is likely to continue to fall.

Thus, BTC may overcome the $67,500 support level and head towards $65,000, where support was previously seen. However, if the market reacts positively to the whales’ buying activity and this trend is supported by favorable external factors, BTC will be able to hold on.

In a positive development of events, BTC is able to defend the level of $70,034, laying the foundation for a probable breakout to $71,885 in the short term.

Bitcoin whales remain active: one of them bought 340 BTC worth $23.14 million, while another opened a long position with 40x leverage.