Whales Buying Bitcoins While It Holds At $56K
While Bitcoin continues to fall in price, whales are buying up the cryptocurrency, clearly counting on an early reversal of the trend.
Bitcoin dropped to a low of $55,640 on Bitstamp on November 19, according to TradingView.
After testing its lowest levels in over a month, Bitcoin has never been able to bounce back. Now analysts are wondering.
Decentrader trading platform analyst Filbfilb stated in his latest YouTube update that 50-day and 100-day moving averages (DMA) are the only things that can help the bulls.
But later, Bitcoin fell through the 50-day DMA, leaving only 100DMA at just above $53,000.
“I’m definitely going to go long at $53,000 again,” he told viewers, adding that the odds of a 100DMA defensive price were good enough.
However, the high open interest in Bitcoin derivatives could pose some problems for traders despite the price drop.
According to Filbfilb, this is due to the fact that traders are taking long positions. And the result will be either a pure rebound or “washing out” of their positions.
On some major exchanges, funding rates remained elevated, which may suggest that prices will return higher.
According to blockchain data, the third-largest BTC address continued to buy this week. After increasing the balance by 207 BTC, larger savings followed in the form of purchases of 1,647 BTC, 700 BTC and 484 BTC.
However, those who have bought Bitcoins in the past six to twelve months are still determined not to sell their coins.