Don’t panic, whales are waiting to buy Bitcoins for 8 800 USD

Market data shows that whales are preparing to purchase Bitcoins at a support level of 8 800 USD. This means that it is unlikely that there will be a similar decline as on March 13, when BTC dropped to only $ 3,600.

The price of Bitcoin (BTC) fell sharply by 10% in a single day on September 4. After the downturn, sentiment around the cryptocurrency market became noticeably more cautious, and the fear and greed index flashed “fear” for the first time since July.

Why did Bitcoins fall and why do whales order BTC for 8 800 USD?

Analysts primarily attribute the correction of Bitcoins to sales from miners. Prior to the downturn, analyst firm CryptoQuant pointed out that mining pools were moving and selling BTC. After monitoring the outflows from the main pools, the data showed that the miners had moved an unusually large number of Bitcoins to crypto exchanges. Shortly afterwards, the price of BTC began to fall and eventually dropped to less than $ 10,000.

When the trend reverses, it tends to reach the farthest level of support or resistance. For example, on March 13, BTC dropped to $ 3,600. From April to September, the Bitcoins recovered to more than $ 12,000. So whales can expect Bitcoins to drop to a lower level of support, which is 8 800 USD. Analyst Cole Garner said:

“Whales have their bids at $ 8,800. I expect the bottom will probably be there.”

The data could indicate that whales expect greater returns in the near future. But it also shows that whales do not expect a massive correction compared to previous cycles. The price of Bitcoin has risen by 247% since March, so the correction was probably not a surprise for many traders.

Raoul Pal, CEO of Global Macro Investor, said Bitcoins have a typical 25% -40% return on the bull market. What will happen to BTC next? Whalemap, a whale data provider, said many HODLers sold Bitcoins in a panic because they fell. The intensity of the decline may have surprised investors. The correction consisted of a combination of profit-making whales and investors panicking, which could increase the chances of lower volatility in the near future.

In the short term, Michael van de Poppe, a full-time trader on the Amsterdam Stock Exchange, said the Bitcoins may be approaching bottom formation. He expects a period of consolidation and said that this decline in markets may not be the end of the current altseason.

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