James Atkins
Editor
Editor
Bitcoin value dips attracts big investors, what it implies
Bitcoin (BTC) slows dramatically in April, following a very strong March. For the first time in weeks, the currency falls below $40,000. BTC has been able to link some of these losses by increasing big investors buying. The following are the key takeaways:
The most likely reason for the Bitcoin price crash is that a whale sells 1,000 BTC on the spot market. This significantly impacts on the market, as it would have been enough to push the price down by around $200.
The Bitcoin price fell sharply on Saturday, losing around $200 in value. The sell-off was short-lived and the Bitcoin price has since recovered.
The good news is that, despite this sell-off, the Bitcoin big investors are still accumulating more Bitcoin. In fact, data from Glassnode shows that the number of whales with 1,000+ BTC is on the increase.
In the near term, we expect Bitcoin’s price to hold steady. When big wallets accumulate BTC frequently indicates that bigger gains are on the way.
Currently, BTC is firmly above the crucial $40,000 mark. Before the mega-cap reaches $45,000, we anticipate consolidation to continue.
It’s tough to identify any more uptrend above $45,000 right now. Even during its strong March rally, BTC fails to clear $49,000 and soon falls sharply after. Most of the dip buyers we observe at the $38,000 prices are most likely short-term investors.
We predict that the majority of these investors will make a profit when the price reaches $45,000. In the meantime, we anticipate a modest sell-off that will return bitcoin to $40,000 in the near term.
In any case, Bitcoin investors are looking for anything under $40,000. However, owing to the coin’s still-considerable potential, it is possible that it will rise to $45,000 from its current level.
So if you want to take a chance on it and make at least 10% in profits over the coming days.
There is no doubt that the recent fall in Bitcoin value is driven by a number of significant investors entering the market.
Many are making big bets on the coin and seeing significant returns already, while others are positioning themselves to benefit if Bitcoin reaches new heights in the future.
However, there is much debate over whether Bitcoin can sustain these high prices or if we will see another massive sell-off once these new investors cash out their profits.
The latest data shows that the number of Bitcoin addresses holding more than 1 BTC has reached an all-time high. According to Glassnode, there are now 2,396 Bitcoin whale addresses, each containing over 1 BTC. This represents a 5.2% increase in just two weeks.
Despite the fall, Bitcoin (large investors with 1,000+ BTC) continue to accumulate more Bitcoin. Data from Glassnode shows that the number of whales with 1,000+ BTC increased by 2% last week.
This is a bullish sign as it indicates that large investors are still confident in the cryptocurrency.
The subject of Bitcoin is as volatile as the market performance of the coin itself. It will be nice to know your thoughts!
I have been writing copy for blockchain-related projects since 2017. I understand the importance of being able to communicate clearly and effectively with both technical and non-technical audiences. By leveraging my understanding of the crypto industry trends, I can help increase adoption in this rapidly evolving landscape.
