Bitcoin Whales Grab $553M BTC During Price Dip —$50k Rebound in Motion?

Insights:

• Bitcoin (BTC) price tumbled to a weekly low of $40,555 of Wednesday morning, down 9% from its yearly peak of $44,700 recorded on Dec 8. 
• On-chain data trail shows that Large Institutional investors capitalized on the Bitcoin price dip to acquire another 13,010 BTC (~$533 million). 
• Historical accumulation trends show that Bitcoin smashing the $43,200 resistance could catalyze more gains.

Bitcoin (BTC) price dropped to a 10-day low of $40,555 on Wednesday morning, down 9% from the 2023 peak of $44,700 recorded on Dec 8. On-chain data analysis depicts that Large Institutional investors capitalized on the Bitcoin price dip to acquire another 13,010 BTC (~$533 million). 

Crypto Whales Bought 13,010 BTC During the Price Dip 

Bitcoin price dipped on Wednesday, as markets responded to less-than-desired inflation figures from the November US CPI report. However, on-chain data trends show that large institutional investors remained unfazed. 

According to the latest data readings from IntoTheBlock, BTC Large holder net-flow increased significantly this week as Bitcoin price dipped.

BTC whales added a total of 13,010 BTC to their holdings between Dec 10 and Dec 13. As seen below, the whales began to buy just as BTC price started to decline on Monday. 

Valued at the average of $41,000, the Bitcoin whales have capitalized on the recent price dip to increase their holdings by $533 million in the last 3 days. Such buying frenzy among corporate entities and high net-worth investors often puts upward pressure on a cryptocurrency’s price for a few reasons. 

Firstly, when crypto whales buy large quantities of coins within a short period as observed, its mops up excess market supply. It also provides much-need liquidity, which enables panic sellers, to execute trades at favorable prices 

More importantly, it encourages other stakeholders in the ecosystem to take on a positive momentum. All of these factors are likely to swing the BTC momentum in the direction of the bulls and trigger an early price rebound in the days ahead. 

Forecast: Can BTC Price Reclaim $50,000 ? 

Bitcoin price looks set to reclaim the $50,000 territory in the short-term. From an on-chain perspective, corporate investors accumulating BTC to front-run the impending Spot ETF approval appear to be the major driver behind the current bullish momentum. 

Without any significant setback to the Spot ETF approvals process, the Bitcoin bulls are expected to remain in control. 

However, historical buy/sell trends show that the $43,500 area could form a significant resistance to the next Bitcoin price bounce. 

The In/Out of the Money Around Price (IOMAP) data, which groups the current Bitcoin holders according to their entry prices, also affirms this bullish outlook.

It shows that 6.18 million current holders had bought 2.26 million BTC at an average price of $43,245. If those holders look to take some profits, BTC price could retrace again in the short-term.  

But if the whales maintain their current buying trend, Bitcoin price will likely smash that resistance has reclaim $50,000 as predicted.

On the flip side, the bears could invalidate that positive prediction if Bitcoin price dips below the critical psychological resistance at $40,000. But, in that case, the 1.17 million holders that bought 520,140 BTC at the average price of $41,000 could offer significant support. 

Since the Bitcoin Spot ETF approval is expected in the next few months, BTC price will likely defend that support level fiercely.