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⚡Whales Buy the Bitcoin Dip🐋

Croxroad

26 May 2024 — 3 min read

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😛 Bitcoin Dips Below $67,000

According to a recent tweet published by crypto analyst and trader Ali Martinez, large Bitcoin holders, known in the crypto community as whales, have taken advantage of the current BTC dip. Over the last 24 hours, the world’s flagship cryptocurrency plunged by 4.20%, dropping from $69,920 to $66,980. However, a rebound followed, bringing the price back up by 1.70%. At the time of writing, Bitcoin is trading at $68,180 on the Bitstamp exchange.

It was during Bitcoin's dip below the $67,000 level that whales decided to buy the dip, purchasing as much as 20,000 BTC. This substantial acquisition of the leading digital currency is valued at a staggering $1.34 billion in fiat. The strategic buying by these large holders underscores their confidence in Bitcoin’s long-term potential, even amidst short-term market fluctuations.

The Bitcoin price plunge coincided with the approval of Ethereum spot ETFs by the Securities and Exchange Commission (SEC) on Thursday. These Ethereum exchange-traded funds were approved half a year after the spot Bitcoin ETFs received the green light from the regulator in January. However, experts believe that the demand for the spot Ethereum ETFs may not be as strong as for the Bitcoin exchange-traded product, suggesting that the market's immediate reaction might not fully reflect the potential long-term impact of this development.

💙 Bitcoin RSI Emulates 2017 Bull Run

Bitcoin (BTC) is quietly mirroring a key feature from the 2016 bull market, a pattern which could culminate at the $75,000 mark. In a post on X on May 24, popular trader Jelle pointed to what might be the next “main breakout” for BTC price action. Bitcoin analysis often draws parallels between current and past bull cycles, particularly the two most recent: 2016–2017 and 2020–2021. Despite 2024 distinguishing itself by hitting a new all-time high before the block subsidy halving, data suggests Bitcoin’s steepest gains are still ahead. For Jelle, the Relative Strength Index (RSI) is a crucial indicator, with BTC/USD painting a promising picture on weekly timeframes.

Jelle noted that Bitcoin's current behaviour is strikingly similar to early 2017. An accompanying chart compares BTC/USD performance from January 2023 to now with its journey to the 2017 peak of $20,000. Today, as seven years ago, RSI is declining while the price accelerates toward previous highs. Jelle highlighted a “hidden bullish divergence” and turbulent conditions around the previous all-time highs, suggesting a major breakout if Bitcoin clears $75,000. Historically, Bitcoin tends to see its strongest upside when RSI is in the “overbought” zone above 70, a condition that can persist for some time before the rally becomes unsustainable.

Opinions vary on Bitcoin's short-term prospects. The recent preliminary approval of spot Ether (ETH) exchange-traded funds (ETFs) in the United States has not significantly boosted either Bitcoin or Ether. Despite remaining range bound, BTC/USD faces predictions of a possible return to $60,000 or even lower. Popular traders like Credible Crypto and Michaël van de Poppe, CEO of MNTrading, foresee potential declines. Van de Poppe noted that Bitcoin is consolidating within a range and could drop to $61,000-$63,000. He also mentioned that liquidity is rotating from Bitcoin to Ether following the ETF launch, describing the situation as "fine."

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