Bitcoin Data Shows Whales Are Buying the Dip

Bitcoin prices have seen four double-digit corrections in the last seven weeks, with the biggest—23.3% plunge to lows—happening this morning. Despite the carnage, large whales are buying the dip. 

Bitcoin Whales Buy the Dip

BTC dropped to lows of $32,329 early Monday during the Asian trading hours, falling 23.3% from ira all-time high of $42,000. 

Bitcoin “whale” addresses—wallets with more than 1,000 BTC worth nearly $350 million—nonetheless, have continued to rise. It rose by 4.02% since Dec. 2, 2020, according to the findings of independent researcher Elias Simos. 

Further, smaller addresses with 0.01 BTC (worth $350) have dropped by 6.32% in the same period.

Comparison of the number of Bitcoin addresses on Dec. 2, 2020, and Jan. 11, 2021. Source: Twitter

The comparison adds fuel to the narrative that institutions are buying BTC at the expense of retail investors and traders. 

Furthermore, long-term Bitcoin tops (for instance, 2013 and 2017) are marked by retail euphoria. Currently, the markets are witnessing the precise opposite. 

Bitcoin number of addresses with more than 0.01 BTC (green) 1000 (pink). Source: GlassnodeClassic BTC Bull Corrections

Previous run-ups to all-time highs in 2013 and 2017 have regularly made 20-30% corrections during Bitcoin bull markets. 

Bitcoin price chart with local highs and corrections since $20,000. Source: Trading View

BTC has had four double-digit percentage losses since first encountering resistance from the 2017 all-time high level in November. The progression has created higher highs and higher lows after each correction. 

Bitcoin recent local top, bottom, and correction percentages. 

If the trend continues, today’s low of $32,329 (on Coinbase) could be the local bottom before further upside. 

Lower highs and lower lows characterize a bull market. Thus, the previous local low of $27,650 will act as an important level of support for the alpha cryptocurrency in case of further downside.

BTC is changing hands at $33,593 at the time of writing.  

Disclosure: This author held Bitcoin at the time of publication.