In a dramatic display of market activity, Bitcoin (BTC) whales scooped up a staggering $636 million worth of BTC on Tuesday, May 21. This spike in whale activity was noted during Bitcoin price rally beyond $71,500. The potential reason behind this accumulation could be the Fear of Missing Out (FOMO) due to the growing optimism around BTC’s future trajectory.
Thomas Fahrer, the co-founder of Apollo, a Bitcoin insights provider, spotlighted this development in a post on X. Moreover, the snapshot shared by him showed that the latest surge in whale buying amounted to 8,958 BTC in a single day. Moreover, in the last seven days, whales have added a total of 12,058 BTC to their holdings.
This reserve amounts to a hefty $840.32 million based on the prevailing market price of Bitcoin. This frenzy of accumulation has been driven by FOMO as traders and investors scramble to secure their positions amid Bitcoin’s volatile price movements.
However, despite this substantial whale activity, the BTC price saw a correction, dipping to the $69,000 level. This decline has raised questions about the short-term trajectory of the oldest crypto. Earlier, the Bitcoin price rallied potentially due to the positive news surrounding Ethereum ETFs as the SEC urged the issuers to file amended 19b-4 filings.
On the flip side, analysts remain optimistic on the Bitcoin price trajectory owing to technical indicators. Furthermore, the robust Spot Bitcoin ETF inflows also impacted the market dynamics positively. On Tuesday, the Bitcoin ETFs registered a phenomenal influx of $305.7 million with BlackRock’s IBIT taking the lead.
In addition, a sizeable stake of the whale purchases come from these ETFs since their launch in January 2024. Hence, analysts have called for further positive flows so the BTC price can attain new highs. Moreover, any positive news surrounding Bitcoin could also act as a catalyst.
Also Read: Don’t FOMO, the Bitcoin (BTC) Price Consolidation to Continue for Few Weeks
The Bitcoin price extended to the $69,000 level today and kept clinging onto a downtrend for a while. However, a major rebound was witnessed as it surpassed $70,000 despite remaining in the red. As of writing, the BTC price was down by 1.10% to $70,098.61 on Wednesday, May 22.
Moreover, the crypto held an enormous market valuation of $1.38 trillion. Meanwhile, the trading volume plummeted 25.44% to $39.72 billion. Furthermore, Ali Martinez, a prominent crypto analyst, weighed in on the situation.
In a post on X, he highlighted the significance of the TD Sequential, a technical analysis indicator known for predicting market turning points. “The TD Sequential has accurately predicted #Bitcoin price action on the one-hour chart. Now, it presents a buy signal, anticipating $BTC will rebound!”
Martinez’s analysis suggests that despite the recent dip, Bitcoin could be poised for a rebound based on this buy signal. Moreover, such a rebound trend has already been witnessed. The TD Sequential indicator is a popular tool among traders for identifying potential trend reversals and price movements. A buy signal on this indicator often leads to increased market confidence, potentially driving prices higher.
Also Read: Bitcoin Price Analysis: 2 Key Factors Driving Bitcoin To $100,000 In 2024
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