Bitcoin’s (BTC) price showed a mild recovery after crashing below $30,000 on Monday . Whales and institutional traders are seen accumulating BTC at lower prices. It has resulted in the BTC price recovering marginally to trade around $32,096.
While some have sold their BTC under panic, many investors bought the dip to increase their Bitcoin holdings. The bitcoin nation El Salvador has also bought 500 bitcoins as the BTC prices bottomed out.
The BTC price had dropped to as low as $29,750 in the last 24 hours amid panic selling. However, the trend reversed instantly as whales moved in to buy the BTC dips.
As per WhaleAlert, BTC saw heavy outflows from exchanges such as Gemini, Coinbase, and Bitfinex in the last few hours. In fact, Bitcoins worth more than $500 million have been transferred to an unknown whale’s wallets. Therefore, the WhaleAlert data and price action indicate a possibility of Bitcoin’s price moving higher from current levels.
Moreover, the on-chain data by Santiment depicts Bitcoin (BTC) is very close to dipping into the historic buy zone, which generally sees prices bounce from lower levels. Moreover, the data shows average profitability levels are the most negative since late January.
In fact, Justin Sun, founder of Tron, has followed El Salvador in purchasing 500 BTC at an average price of $31,031.35 for $15.5 million. The interest among whales and institutional investors is growing at current levels. Therefore, the probability of a bounce seems strong.
The crypto market sentiment index continues to be at an “extreme fear” level. The index has fallen to 10, the lowest level in the past few years. A recent CoinShares report showed Bitcoin accumulation by institutional traders such as ProShares and Purpose Investments buying significant BTCs in the first week of May.
Despite whale accumulation, the Bitcoin price is still trading in a range. Thus, retail investors must wait until a clear breakout is confirmed.
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