Bitcoin whales go shopping before halving and could spark another rally

Bitcoin rose again this Friday (19), surpassing $65,000, after trading below $60,000 during the week. Data from IntoTheBlock shows that whales are behind this recovery with purchases of almost 20,000 bitcoins (R6.6 billion).

In the same report, analysts state that these purchases often precede Bitcoin’s appreciation. In other words, it is possible that the market will resume its rally shortly after the halving.

As for the halving, the event is expected to take place between next Friday evening (19) and the early hours of next Saturday (20), depending on the speed at which the next blocks will be mined. At the time of writing, there are still 38 blocks left before the halving (380 minutes).

Whales are taking advantage of the decline to buy Bitcoin and could spark a new surge

While the halving won’t have as immediate an impact on the market, the reduction in miner rewards is causing both excitement and fear among investors. Furthermore, the escalation of the conflict between Iran and Israel has also made Bitcoin more volatile over the past week.

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The whales (major investors) seemed to just observe this move, but finally decided to go shopping on Thursday (18). According to data from IntoTheBlock, contributions reach R$6.6 billion, a peak not seen since the beginning of the month.

“Bitcoin whales may have finally started buying the dip.”

“Yesterday, the largest Bitcoin holders, who own more than 0.1% of the total supply, collectively added 19,760 Bitcoins to their holdings at an average price of $62,500.”wrote IntoTheBlock. “Historically, accumulations by these addresses have often preceded increases in the price of Bitcoin.”

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In addition to the term whale, other people also call these investors “smart money.” In other words, they are players who can make deeper analyzes and are followed by schools of small investors who influence the market.

CryptoQuant also analyzed market demand

The analysis company CryptoQuant wrote on Friday (19) that investors are taking profits on the futures markets as a result of geopolitical conflicts. However, it also shows that Bitcoin may have already bottomed out and is ready to rise again.

“There is a noticeable slowdown in Bitcoin acquisition by large holders and ETFs, likely due to market uncertainty and upcoming structural changes due to the halving”wrote CryptoQuant.

“However, the recent sell-off has wiped out traders’ unrealized gains, which historically has been a sign of a possible market bottom in bull cycles.”

In simpler terms, those who wanted to sell have already sold and now have to buy again, as the whales are already doing according to an analysis by IntoTheBlock.

Currently, the biggest support for Bitcoin is in the region of $60,000, while the biggest resistance is in the region of $73,000, and it may be active in this region for a few days until new news moves the market again.

Source: Live Coins