Bitcoin Whales Accumulate As Bitfinex Long Calls Surge
Crypto Briefing | Sep 15, 2021 01:02AM ET
Bitcoin looks primed for a bullish impulse as the buying pressure behind it is rising at a rapid rate. Investors appear to be re-entering the market as long Bitcoin positions increase while whales add tokens to their holdings. Although the recent spike in buying pressure looks encouraging, BTC still has one crucial obstacle to overcome. Whales have turned their attention back to Bitcoin.
The flash crash of Sep. 7 has sent market participants into fear. Now, some of the most renowned technical analysts in the crypto industry maintain that Bitcoin’s rejection from $53,000 could lead to a catastrophic outlook.
For instance, the analyst operating under the alias dave the wave believes that the flagship cryptocurrency would drop toward $30,000. They stated that the recent downward pressure could accelerate into a more significant downtrend as the moving average convergence divergence or MACD had a bearish cross on BTC’s monthly chart.
Despite the bearish worst-case scenario, several fundamental factors suggest that some investors have taken advantage of the price drop to buy Bitcoin at a discount.
The number of long Bitcoin positions in Hong Kong-based cryptocurrency exchange Bitfinex has made a higher high for the first time since July 22. More than 3,200 long positions have been created over the last week alone, suggesting that some traders have bought the dip.
Similarly, behavior analytics platform Santiment shows that whales are accumulating.
Get The News You Want
Addresses holding 10,000 to 100,000 BTC have purchased over 60,000 BTC worth roughly $2.82 billion within the same period. This significant number of tokens were also removed from known cryptocurrency exchange wallets, reducing the selling pressure behind Bitcoin.
While buy orders are piling up, IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model shows a major supply barrier ahead of Bitcoin. Roughly two million addresses have previously purchased nearly 900,000 BTC between $46,900 and $49,650.
Only a daily candlestick close above this resistance wall would signal the resumption of the uptrend.
On the other hand, Bitcoin must hold above the $44,000 to $46,800 support zone to avoid further losses. Slicing through this significant interest area may encourage investors to sell their BTC to prevent seeing their investments go “Out of the Money.” In this eventuality, a downswing to $38,000 could play out.
Original Post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.