Bitcoin and the overall cryptocurrency market are experiencing a significant drop.
One institutional giant took advantage of the drop and bought $70 million worth of Bitcoin.
According to on-chain data and analytics account Lookonchain, institutional investors are taking advantage of the downturn to profit.
Cryptocurrency investors saw no gains on July 3, with the BTC price falling to $59,600. Historical data suggests that the June drop will be followed by a July rally, but that is not currently the case. What are the predictions for the two largest cryptocurrencies by market cap?
Bitcoin (BTC)
Bitcoin’s failure to regain the $63,000 mark has caused it to fall towards $61,000. Unfortunately, this outcome has paved the way for a drop below $60,000. According to the chart, as of now, Bitcoin is trading slightly above the critical support level of around $60,885. While the 100 EMA at $63,754 and the 200 EMA at $58,260 are closer to the current price and provide support and resistance levels, the 50 EMA at $66,407 provides a distant resistance level.
Bears remain strong, and on July 3, BTC tested $60,000 again. The price dropped to $59,600 on the Binance exchange. The sell-off has not yet extended to the $56,552 support level. However, the risk is not over yet. Although investors are tired of the name Mt Gox, a potential sell-off of more than $9 billion continues to weigh on the market.
So, what do the current technical readings mean for the BTC price? The $60,000 support level is a key point, and if we start seeing closes below this support level, a drop to the $56,552 support level is likely. Beyond this, selling could continue towards $50,000.
However, if BTC price recovers from the $56,552 and $60,000 support levels, it will continue to fluctuate within the current range, with the upper limit at $73,777. Although the RSI is low, the Coinbase BTC Premium Index is at the bottom, and many other indicators point to oversold, the multi-billion dollar selling potential masks them all.
If the price fails to gather momentum and breaks below the 200 EMA at $58,260, it could reach the next major support level of around $55,000. Bitcoin needs to stay above the 200 EMA and gain upside momentum for a more bullish outlook.
Ethereum (ETH)
Bulls were unable to reclaim the EMA20 at $3,451. Despite the strong odds of an ETF listing next week, selling remains strong even at these levels. Bears believe that overall market sentiment will remain negative for some time, and the market generally does not like such confident stances.
Spot Bitcoin ETFs need to play the role of savior here. If institutional investors and individuals entering from traditional markets can convert billions of dollars of returns into buying opportunities, then the selling can be met. Since January, there has been a net inflow of $14.8 billion through the ETF channel (a number that has dropped significantly due to continued net outflows), and the total assets of all ETFs have exceeded $50 billion.
The RSI in the negative zone confirms the dominant sell-off, while the falling EMA20 reflects the strength of the sell-off. A strong support area is located at $3,240, below which a drop to $3,000 could result. On the upside, the targets are $3,730 and $3,887 (above $3,451). Amid the market volatility, a well-known institutional investor invested $70 million in Bitcoin.
Institutional whales are buying Bitcoin in droves during market downturn
Despite the recent sharp decline in Bitcoin and other cryptocurrencies, institutional investors are still taking advantage of the opportunity to make large purchases. When the price of Bitcoin was hovering around $60,000, one institutional whale made headlines when he purchased 1,162 Bitcoins, worth about $70 million.
Bitcoin decline triggers strategic buying by institutional investors
The major purchase comes at a time of significant volatility in Bitcoin prices. On-chain data and analytics provider Lookonchain reports that institutional investors are strategically buying Bitcoin during the downturn. The massive purchase demonstrates the continued confidence and strategic positioning of big players in the crypto market in Bitcoin.
New wallet activity: a strategic move by institutional whales
Interestingly, the new wallet responsible for the recent acquisition of 1,162 BTC was created six days ago and has been actively participating in test trading on Binance. The activity of this new wallet highlights the sophisticated strategies that institutional investors are employing to effectively take advantage of market conditions.
Institutional whales and blockchain transactions
During the same period, another significant transaction on the blockchain showed an investor selling over 2,000 Bitcoins. This included a separate transaction where the investor sold 1,023 Bitcoins, followed by a separate sale of 141.2 Bitcoins. Such large movements provide insight into the various strategies that institutional players use to balance accumulation and liquidation.
in conclusion
The recent acquisitions highlight the key role that institutional investors play in the cryptocurrency market. Despite the market downturn, these players are still showing confidence through strategic acquisitions, indicating that the long-term outlook for Bitcoin may be positive. As the market develops, the actions of these whales remain a key indicator of broader market sentiment and future trends.