Whale buying marked a change in behavior from their inaction during previous declines last week. This action may have helped Bitcoin recover to $65,000, marking the $60,000 level as a key support level for Bitcoin price as buyers step in.
Large Bitcoin (BTC) investors substantially increased their holdings as prices fell below $60,000 in panicked action in early Crypto markets ahead of the asset's highly anticipated halving event.
Blockchain analytics company IntoTheBlock's «net large holder flow» metric shows that Bitcoin addresses accounting for at least 0.1% of supply added 19,760 BTC to their holdings on Friday, worth more than $1.2 billion on average. priced at $62,500.
Large holders, often referred to as whales in Crypto slang, are large market players who control large volumes of digital assets and are generally considered smart and well-informed investors. Their purchases and sales can have a significant impact on the Markets, so Crypto watchers carefully Social Network their behavior to anticipate price movements.
“Bitcoin whales may have finally started buying the dip,” IntoTheBlock said in a report on Friday.. “Historically, accumulations at these addresses often preceded increases in Bitcoin prices.”
The recent moves mark a significant change in whale behavior from earlier this week, when large T investors stepped in to capitalize on the weakness, raising fears of further declines.
The buying may have sparked Bitcoin's sharp rebound above $65,000 from an overnight low of $59,600 as Israel launched airstrikes on Iran . Prominent Crypto Skew also noted that the recovery was, at least in part, driven by spot BTC buyers . BTC recently settled at around $64,000, up 1% in the last 24 hours.
Read more: Bitcoin price jumps as it halves
Zooming out, the largest Crypto by market capitalization has been consolidating over the past few weeks, falling from record prices last month ahead of the four-year halving scheduled for April 20 (UTC). The event will cut the reward for miners in half, reducing the release of new tokens into circulation.
Prices rebounded from around $60,000 after selling off for the third time in a week, forming a significant support level where buyers are stepping in to capitalize on lower prices.
“While margin sellers appear to be de-risking, there was also opportunistic buying at the $60,000-$62,000 level,” Coinbase Institutional analyst David Hahn said in a report Friday.. “We believe this directional uncertainty speaks to our thesis about Bitcoin's varied roles as both a risk and safe-haven asset,” he added.