Recently, cryptocurrency analytics platform Lookonchain reported activities of Bitcoin (BTC) and Ethereum (ETH) whales amid the ongoing market downturn. These whales appear to have been capitalizing on the recent decline in the crypto prices to bolster their holdings.
According to Lookonchain, amid the market dip, a newly established wallet withdrew 700 BTC, valued at roughly $29.36 million, from the Binance exchange.
These BTCs were purchased at an average price of $41,948 each.It is worth noting that, according to the analyst, such a move during a market downturn demonstrates a bullish sentiment on the future of BTC.
It seems that a whale is buying $BTC!In the recent market drop, a new wallet withdrew 700 $BTC($29.36M) from #Binance at an average price of $41,948.https://t.co/5kE1l0mJlo pic.twitter.com/Fj1thu4C6x— Lookonchain (@lookonchain) January 19, 2024
Ethereum Whales Joining The Fray
The narrative of strategic accumulation isn’t limited to Bitcoin. Lookonchain’s subsequent tweet highlighted similar activities in the Ethereum market.
A whale took advantage of the decreased Ethereum prices, buying 3,600 ETH, worth around $8.9 million. Lookonchain highlighted that this investor’s history of buying ETH at lower prices and selling at higher valuations has resulted in substantial profits, estimated at around $25.8 million.
After the price of ETH dropped today, this smart whale bought 3,600 $ETH($8.9M) back at a lower price 5 hours ago.This whale is very good at buying ETH prices and selling ETHThe profit is ~$25.8M currently!https://t.co/UzXbheftr1 pic.twitter.com/DannZzsQVk— Lookonchain (@lookonchain) January 19, 2024
These whale movements are worth noting, especially considering the increasing bearish sentiment in the cryptocurrency markets. Ethereum, for instance, has seen a 1.9% decline in the past 24 hours and a 7.8% drop over the past week.
The asset is currently trading at around $2,475. Bitcoin is experiencing a similar trend, with a nearly 3% decrease in the past 24 hours and a 10% fall over the past week, bringing its price to $40,819 at the time of writing.
This market downturn is also reflected in the asset’s trading volume. Bitcoin’s daily trading volume fell from over $40 billion last Friday to about $26 billion.
Bitcoin Market Analysis And Future Predictions
In light of these developments, renowned crypto analyst Jacob Canfield has cautioned that Bitcoin might face further corrections in the short term.
Canfield notes that the upcoming Bitcoin halving could play a crucial role in rebalancing the market dynamics, potentially tipping the scale towards demand over supply. However, his analysis of Bitcoin’s 4-hour chart indicates the formation of a trend that has historically been an indicator of negative short to mid-term price movements.
For Bitcoin, critical levels include $48,700, marked by the 61.8% Fibonacci retracement, weekly resistance, and a significant support level to watch at $38,700. Earlier this month, Bitcoin traded at the $48,700 zone before retracing.
Canfield warns that following a tap of the 61.8% level, Bitcoin often experiences an 18-22% sell-off, potentially bringing it back to the $38,700 support level.
#Bitcoin update – If you’ve been following me for a while, you’ll know my local top on BTC was $48.7k (as per my playbook posts)The question that everyone is asking now is ‘where do we go from here?’The current narrative is that the ETF approval unlocked the GBTC investors… pic.twitter.com/MayIZp5vEY— Jacob Canfield (@JacobCanfield) January 18, 2024