Bitcoin whales have started accumulating again and one particular whale that dumped a major share at the near-perfect top was seen buying again. Whales buying and selling is seen as a major market sentiment indicator as these whales often dump on market in anticipation of a price crash and start buying when they believe the market has reached a potential price bottom. Thus, the current buying spree seen among whales could indicate Bitcoin price bottom might be near.
Bitcoin price registered its first red monthly candle in May this bull season, a month that saw the price fall 50% from the all-time high of $64,685. BTC is currently trading just above $36,000, consolidating under 40,000 for nearly three weeks now. The coming month could see a possible trend reversal after breaking the key resistance of 40,000 and whale accumulation could become the possible catalyst.
The first week of May saw the crypto market bleed more than $500 billion of its $2 trillion market cap. While analysts have been predicting a market sell-off of such magnitude for quite some time owing to continuous 5 months long bullish momentum, the correction took many by surprise.
Bitcoin Fundamentals Strong to Carry the Bull Market Further
Every bull market be it from 2017 or 2013 has moved in phases followed by pullbacks and correction. Even during the 2017 bull run, the market has registered 4 major corrections in upward of 40%, thus crypto veterans who have seen previous cycles are confident that the current market correction is not the price top for Bitcoin.
Another reason for the current market sell oft was attributed to high leverage over trading and several FUDs including the Chinese ban on crypto trading and mining hitting the market at the same time. Many new traders fell prey to these FUDs and panic sold their Bitcoin.
Read more: CoinGape