Bitcoin’s Dip Below $43k Sparked Aggressive Buying from Large Holders: Report

Earlier this month, Bitcoin’s USD value witnessed a rapid decline from $45,400 to $40,400 in a matter of hours. Despite a quick rebound, this downturn triggered the third-highest volume of long liquidations since the bear market reached its lowest point in November 2022.

However, IntoTheBlock’s analysis reveals a noteworthy trend in the market, indicating a strategic move by large holders during the recent price dip.

Large Bitcoin Holders Accumulate Big During Dip

Bitcoin holders with more than 1% of the total supply have actively accumulated a substantial amount, exceeding 14,000 BTC over the past week. According to the crypto analysis platform’s findings, the accumulation coincided with a period where Bitcoin prices temporarily fell below $43,000.

The actions of these significant holders suggest a strong belief in the long-term potential of Bitcoin, as they took advantage of the lower prices to increase their holdings. This type of activity from large holders often serves as an indicator of confidence in the asset.

“Large holders bought the dip! Bitcoin holders holding >1% of the supply accumulated more than 14k $BTC over the past week as prices dipped below $43k.”

‘Buy The Dip’ Mentions Soar

The rising excitement in the cryptocurrency community regarding the potential approval of a Bitcoin ETF has significantly impacted the industry’s recovery from the challenges of 2022.

Approval is anticipated to create potential opportunities for mainstream investors to engage in the digital asset market. Numerous experts, including the crypto-financial service platform Matrixport, have expressed optimism in this regard. However, a speculative report released by the latter on January 3rd suggested the potential denial or delay of all spot Bitcoin ETF applications by the SEC led to a substantial market correction.

Subsequently, blockchain analytics platform Santiment revealed a surge in “buy the dip” mentions, reaching 323, the highest since March 25, 2022. Santiment’s Social Trends indicator monitors discussions on Telegram, Reddit, X, and 4Chan to detect keywords or subjects that have generated significant interest.

While the increased “buy the dip” mentions indicate a bullish sentiment among the crowd, historical patterns reveal that such spikes have often been followed by more significant price pullbacks. In the 2021 bull market, instances of heightened buy-the-dip calls were typically accompanied or succeeded by further declines in prices.

Eventually, market pullbacks found stability when sentiment shifted towards a more neutral-to-bearish stance among the crowd.

Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

Source link

Leave a Comment