The post Bitcoin Faces Major Drawdown Amid Market Sell-Off And Whale Accumulation appeared on BitcoinEthereumNews.com.

August has proven to be an exceptionally eventful month for both equity and digital asset markets, marked by a significant market sell-off triggered by a “correlation-1” event. Bitcoin has been no exception, experiencing its largest drawdown of the current cycle, leading to capitulation among short-term holders. August has already been a exceptionally eventful month across both equity and digital asset markets, after a “correlation-1” event sparked a major market sell-off. #Bitcoin has been no exception, recording its largest drawdown of the cycle, causing capitulation amongst… pic.twitter.com/o3FsmscNvn — glassnode (@glassnode) August 7, 2024 Despite the recent price decline, large Bitcoin holders have increased their $BTC holdings. During the recent correction, the number of Bitcoin addresses holding 100 or more BTC rose from 15,913 to 16,006, indicating that whales have been buying the dip. However, Bitcoin ETFs saw net outflows on Monday, reflecting a more cautious sentiment among some investors. The number of $BTC addresses holding 100+ #BTC increased from 15,913 to 16,006 during the recent correction, indicating that #Bitcoin whales bought the dip. pic.twitter.com/3oSPGFjCq8 — Ali (@ali_charts) August 7, 2024 Analyst Ali Martinez notes that the TD Sequential indicator on Bitcoin’s 4-hour chart is signaling a potential correction, suggesting that further adjustments may be ahead. The TD Sequential indicator shows a sell signal on the #Bitcoin 4-hour chart, suggesting a potential correction ahead! pic.twitter.com/LiPQu0FmP9 — Ali (@ali_charts) August 7, 2024 Bitcoin On-Chain Data Summary Bullish Indicators:– Hashrate Recovery: Miner capitulation appears to be nearly over, with hashrate approaching all-time highs. The U.S. mining cost is around $43K per BTC, suggesting that hashrate stability will likely continue unless prices fall below this level.– Whale Accumulation: There have been significant inflows of BTC into custody wallets. Permanent holder addresses have increased by 404,000 BTC, including 40,000 BTC in U.S. spot ETFs over the…

---

Filed under: News - @ August 8, 2024 6:12 am