Bitcoin (BTC) and Ethereum (ETH)
Recently, cryptocurrency analytics platform Lookonchain reported activity from Bitcoin (BTC) and Ethereum (ETH) whales amid the ongoing market downturn. These whales appear to have taken advantage of the recent drop in crypto prices to increase their holdings.
According to Lookonchain, a newly created wallet withdrew 700 BTC, worth about $29.36 million, from the Binance exchange amid the market decline.
These BTCs were purchased at an average price of $41,948 each. It is worth noting that such a move during a market downturn shows bullish sentiment about the future of BTC, according to the analyst.
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It seems a whale is buying $BTC!
During the recent market decline, a new wallet withdrew $700 BTC ($29.36 million) from #Binance at an average price of $41,948.https://t.co/5kE1l0mJlo pic.twitter.com/Fj1thu4C6x
– Lookonchain (@lookonchain) January 19, 2024
Ethereum whales are joining the fray
The narrative of strategic accumulation is not limited to Bitcoin. Lookonchain’s subsequent tweet highlighted similar activity in the Ethereum market.
Taking advantage of lower Ethereum prices, a whale purchased 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 significant profits, estimated at approximately $25.8 million.
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After the price of $ETH fell today, this smart whale bought back $3,600 ($8.9 million) at a lower price 5 hours ago.
This whale is very good at buying $ETH at low prices and selling $ETH at high prices.
Profit is currently ~$25.8 million! https://t.co/UzXbheftr1 pic.twitter.com/DannZzsQVk
– Lookonchain (@lookonchain) January 19, 2024
These whale moves are worth noting, especially given the increasing bearish sentiment in the cryptocurrency markets. Ethereum, for example, saw a 1.9% decline in the last 24 hours and a 7.8% decline over the past week.
The asset is currently trading at around $2,475. Bitcoin is experiencing a similar trend, down almost 3% in the last 24 hours and down 10% over the past week, putting its price at $40,819 at the time of writing.
BTC price is moving sideways on the 4-hour chart. Source: BTC/USDT on TradingView.com
This market downturn is also reflected in the trading volume of the asset. Bitcoin's daily trading volume fell to about $26 billion from over $40 billion last Friday.
Bitcoin market analysis and future predictions
Given these developments, renowned crypto analyst Jacob Canfield warned that Bitcoin could face further corrections in the short term.
Canfield notes that Bitcoin's upcoming halving could play a crucial role in rebalancing market dynamics and potentially lead to demand taking precedence over supply. However, his analysis of Bitcoin's 4-hour chart suggests the formation of a trend that has historically been an indicator of negative short- to medium-term price action.
Critical levels for Bitcoin include $48,700, marked by the 61.8% Fibonacci retracement, weekly resistance, and a key support level to watch at $38,700. Earlier this month, Bitcoin was trading in the $48,700 area before experiencing a decline.
Canfield warns that Bitcoin often experiences an 18 to 22 percent sell-off after reaching the 61.8 percent level, which could potentially take it back to the $38,700 support level.
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#Bitcoin Update – If you've been following me for a while, you know that my local high on $BTC was $48.7K (according to my Playbook posts)
The question on everyone’s mind now is, “Where do we go from here?”
The current narrative is that ETF approval has unlocked GBTC investors… pic.twitter.com/MayIZp5vEY
— Jacob Canfield (@JacobCanfield) January 18, 2024
Featured image from Unsplash, chart from TradingView
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
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