Bitcoin (BTC) rebounded 17% to trade near $70,000 on Monday, from its 15-month low below $60,000, as whales took advantage of discounted prices to accumulate.
Key takeaways:
Large investors have bought the dip to $60,000, adding at least 40,000 BTC.
Bitcoin’s downside risks remain as buyers fail to push the price above $72,000.
Bitcoin whales snap up 40,000 BTC on price dip
Market participants have observed deliberate posturing by whales, with analysis suggesting they played an important role in the latest BTC price recovery.
Whales have been accumulating massive amounts of Bitcoin during the recent drop, accumulating about 40,000 BTC, according to Glassnode.
Related: What crashed Bitcoin? Three theories behind BTC's trip below $60K
The chart below reveals that addresses holding 1,000-10,000 BTC have added 22,000 BTC since Friday, while those with 10,000-100,000 BTC acquired about 18,000 BTC over the same period.
The accumulation by whales was followed by Bitcoin’s 20% rebound to $72,000 from its 15-month low below $60,000 reached on Friday.
Bitcoin’s recovery was also fueled by buying from Binance’s Secure Asset Fund for Users (SAFU), which has added another 4,225 BTC worth $300 million.
The SAFU BTC address now holds 10,455 BTC worth $731 million, leaving about $239 million more to be converted.
As Cointelegraph reported, US-based spot Bitcoin ETFs investors also bought the dip, with $331 million flowing into these investment products on Friday.
Whales fail to push BTC price above $72,000
In January, Cointelegraph reported similar activity when Bitcoin whales accumulated 56,000 BTC following a price dip to $84,000. This preceded a 16% rise in Bitcoin price to its year-to-date high at $96,000.
However, this was not enough to sustain the recovery as the BTC/USD pair crashed by over 38% to $60,000.
A similar scenario could be playing out in the short term after the price was rejected from the resistance line of an ascending triangle at $72,000.
The chart below shows that the price risks a breakdown below the triangle’s lower trendline, signaling a possible continuation of the downtrend.
The first area of interest is the $66,000-$68,000 support zone, where the 200-week EMA currently sits.
But while some analysts believe that Bitcoin has not yet found a real bottom, TexasWest Capital founder Christopher Inks said that “the path of least resistance for Bitcoin at the moment is up or sideways, not new lows.”
“We didn’t get the Bitcoin weekly close back in the range at $75K or higher,” Inks said in a Monday post on X, adding:
“We want to see the low holding for the next 2-3 weeks with declining volumes on the pullbacks.”
The analyst was referring to the weekly support at $66,000, which AlphaBTC says the price will likely retest before it can go higher.
As Cointelegraph reported, Bitcoin could find a “real bottom” around $50,000 in a repeat of the 2022 bear market.
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