Bitcoin has once again entered a rollercoaster period, giving many traders hope after a quick recovery, but now scaring many others and retesting support levels around $40K. Apparently, even some whales are preparing for a possible new fall.
On Friday, Bitcoin threatened to fall again, after a rally that even scared many. These moves may be causing some whales to prepare for the near-term future of the market, moving large amounts of bitcoin.
According to alerts from the Bitcoin Block Bot, a movement tracker on the Bitcoin block chain, there were movements of more than 11,000 bitcoins during the beginning of this Friday.
On Friday morning, two large-scale transactions were made, the first moving 3,616 BTC, about 148 million dollars, and the second 8,000 bitcoins, about 333 million dollars.
The two transfers were made in a period of less than an hour.
Whales moved over 200,000 bitcoins as Bitcoin rallied around 18% earlier this week. This move started just as Bitcoin reclaimed the all-important support at $40,000, a psychological barrier that is sure to stir market sentiment.
The report noted that the supply of Bitcoin and Tether on various cryptocurrency exchanges has been falling for the past 30 days, being moved by these whales.
This indicates a positive trend for the crypto market as a whole, after all, it indicates that holders are less willing to sell their assets, as these moves tend to be withdrawing bitcoins from exchanges to cold wallets.
This causes the supply of cryptocurrencies to decrease on exchanges, decreasing the selling pressure in general, a positive sign in the medium and short term.
Bitcoin continues to support $40K
Bitcoin price in the last hours. Source: CoinMarketCap
Despite having a tough period in the last 24 hours, the support above $40K holds and as said, this is a very important value for the market. However, the situation does not seem to be the best, considering how much the price has been suffering from the downward pressure in the last few hours.
The important thing now is to keep the price above US$40,000 so that the buying force once again demonstrates consistency for new gains in the medium term.