On-chain data suggests that Bitcoin (BTC) whales raised BTC at $ 48,000 after the recent decline of the flagship cryptocurrency.
The cryptocurrency market experienced a correction in late February, with BTC prices falling below the $ 50,000 mark. The Bitcoin whales took advantage of the price drop to take stronger positions in the market.
According to the latest data from CryptoQuant, Bitcoin whales racked up the cryptocurrency at $ 48,000, even though the price of BTC nearly doubled in 2021. The trend shows increased confidence in Bitcoin as the price stabilizes around the level of $ 50,000.
The data comes from CryptoQuant's coverage of Coinbase Pro's BTC outflow. Usually in bull cycles, whales regularly benefit from their positions. When whales liquidate their positions, this leads to massive price fluctuations in the market.
However, the current bull cycle is different, with whales buying bitcoin rather than selling it. This suggests that they are confident that the price of BTC will skyrocket even above the current $ 50,000 level in the coming weeks and months.
The current institutional buying level is $ 48,000, and a BTC price falling below that level prompted massive whale purchases. CryptoQuant CEO Ki-Young Ju said in his tweet:
“The whales are accumulating $ BTC. They have been setting a lot of bearish traps lately, but the price seems to be bouncing off the institutional buy level of 48k. As for the recent Coinbase exits, before the wallets, the price was 48,000 ”.
The price of Bitcoin has almost doubled since the beginning of the year. But the buying patterns show that whales or high net worth investors believe that the bull cycle is not over and that the cryptocurrency may continue to rally.
The current upward cycle differs from that of 2017 due to the entry of institutional investors and other high-net-worth individuals and companies. The 2017 rally was sparked and sustained by retail investors, but institutions are buying bitcoin faster than they are mined.
The expansion of the money supply by numerous central banks around the world due to Covid-19 forced companies to look for cash alternatives. Bitcoin became the first choice. Tesla and MicroStrategy have bought over $ 1 billion worth of BTC every year this year. Square has also expanded its position in the market. More companies plan to invest in BTC this year.