Bitcoin and Ethereum Whales Capitalize on Market Downturn
A recent report from cryptocurrency analytics platform Lookonchain reveals that Bitcoin (BTC) and Ethereum (ETH) whales have been taking advantage of the current market downturn to increase their holdings. One newly established wallet withdrew 700 BTC, worth $29.36 million, from the Binance exchange, demonstrating a bullish sentiment on the future of BTC. Similarly, an Ethereum whale purchased 3,600 ETH, valued at $8.9 million, at a lower price and has made substantial profits by selling at higher valuations.
Increasing Bearish Sentiment in the Crypto Markets
These whale movements are significant considering the bearish sentiment prevailing in the cryptocurrency markets. Both Bitcoin and Ethereum have experienced declines in the past 24 hours and over the past week. Bitcoin is currently trading at around $40,819, while Ethereum is valued at approximately $2,475.
Potential Short-Term Corrections for Bitcoin
Analyst Jacob Canfield suggests that Bitcoin may face further corrections in the short term based on his analysis of its 4-hour chart. He points out critical levels to watch, including $48,700 as resistance and $38,700 as support. Following a tap of the 61.8% Fibonacci retracement level, Bitcoin often experiences a sell-off of around 18-22%, potentially bringing it back to the $38,700 support level.
Hot Take: Market Downturn Creates Opportunities for Whales
The ongoing market downturn has presented an opportunity for Bitcoin and Ethereum whales to accumulate more crypto assets. By strategically buying during price dips and selling at higher valuations, these whales have been able to make substantial profits. This activity indicates a bullish sentiment on the future of BTC and ETH. However, it’s important to note the increasing bearish sentiment in the overall cryptocurrency markets, with both Bitcoin and Ethereum experiencing declines. Traders should stay vigilant and closely monitor critical levels for potential short-term corrections.
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