Bitcoin fell from around $98,000 to about $90,800 from Monday to Wednesday, a drop of about 7.5%. Subsequently, Bitcoin rebounded and had returned to $96,700 before the deadline. On-chain data shows that whales 'utilized' this week's decline to accumulate more Bitcoin, indicating that they played an important role in the recovery of Bitcoin's price.
On-chain data analyst Caueconomy stated on the CryptoQuant platform that after nearly $4 billion in Bitcoin losses from short-term investors were transferred to exchanges, whales (referring to wallet addresses holding 1,000 to 10,000 BTC) took advantage of the market's panic sell-off to accumulate. 'On Tuesday, approximately 16,000 Bitcoins entered the reserves of the whales, and this number continued to increase yesterday, with the on-chain accumulation amounting to about $1.5 billion.'
Source: CryptoQuant
However, the analyst also pointed out: 'This level of spot buying is still not sufficient to indicate a broader trend of buying the dip, and remains primarily concentrated among institutional participants.' In other words, other investors also need to participate, such as day traders and retail investors, to push Bitcoin's price above $100,000.
Caueconomy wrote: 'We need greater spot buying volume between retail and institutional participants to reach a new historical high.'
Retail trading activity is still at a 'neutral' level, source: CryptoQuant
According to data from IntoTheBlock, there is strong support below the $95,672 price level, which Bitcoin faces as resistance on its recovery path. The IOMAP chart shows that the current price support range for Bitcoin is between $92,777 and $95,634, within which approximately 490,570 wallets bought about 441,250 BTC.
Source: IntoTheBlock
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