As the market observes a steady decline in Bitcoin’s price over the last week and into the new weekend, sentiments have become even more bearish. Sharing a new perspective on the asset’s near-term potential, a prominent analyst explains how whales can trigger a bullish reversal for Bitcoin.

In a recent post shared by the pseudonymous analyst Ali Charts, data reveals that whale activities on the Bitcoin network have dropped. The new development was recorded in March and has since continued into April. The analyst wrote, “Since March 14, there’s been a noticeable dip in Bitcoin whale activity.”

However, the analyst spotlights an interesting trend that could position Bitcoin more bullishly. Because whales are known for owning large amounts of Bitcoins, whale movements often impact the general perception of Bitcoin amongst the broader market. The analyst explained that Bitcoin could see a boost in price value if whale transactions soar in the near term. “A surge in whale transactions could be the spark needed to boost BTC prices!” He added.

Bitcoin drops to $62,739 as volatility hits

The post-having phase has marked a shift in current market sentiments to extreme bullishness, where, according to Santiment, the prevailing strategy shifts towards holding or accumulating more.

As denoted in an analysis carried out by the on-chain analytics firm, small Bitcoin holders are currently in accumulation mode, while large holders, also known as Whales, have been in redistribution mode for a while now. On the other hand, mid-sized holders (sharks) display a dynamic pattern, oscillating between selling and accumulating phases.

“Interestingly, the largest whales typically begin accumulating again once the market starts to decline post-peak, as seen in the 2018-2019 period. This cyclical behavior underscores the strategic movements of different investor classes through market cycles.” Santiment added. 

Notably, Bitcoin has made a downward reversal amongst bearish sentiments. The weekend kicked off for Bitcoin and the broader cryptocurrency market on an alarming foot as Bitcoin recorded the lowest buy and bullish calls since April 21st, just before the asset recovered above the $67,000 price level.

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Filed under: Bitcoin - @ May 8, 2024 6:21 pm