- Whales accumulate 160,000 BTC as price dips below support.
- Short-term traders show caution while long-term holders stay confident.
- Technical indicators hint at Bitcoin’s potential short-term price rebound.
Bitcoin experienced a sharp downturn last week, dropping over 4 percent and briefly falling below the critical support range of $114,672 to $115,734. The price correction wiped out nearly half of the gains recorded in early July, sparking concerns across short-term markets.
A death cross on the 4-hour timeframe increased the bearishness, which indicates future weakness. Concurrently, futures traders were also becoming more cautious, driving the selling pressure through negative funding rates.
Nevertheless, although short-term sentiment swung to the negative, long-term investors were quick to take the bull and benefit from the fall. According to data provided by CryptoQuant, whale wallets have been amassing more than 160,000 BTC over the past three decades.
This purchase was way above the new supply provided by miners, who contributed only 13,500 BTC at the same interval.
One such signal provided by CryptoQuant, which monitors the wallets only receiving Bitcoin and possessing no sell history, exhibited a gain of about 50,000 BTC in these wallets. That trend indicates that the build-up is consistent even in the short term on the broad market, as seen by the higher-conviction holders.
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Whale Accumulation Widens the Gap Between Supply and Demand
Besides, the contrast between short- and long-term holders has become more apparent. Short-term investors are hovering near lower profit zones, with some showing signs of partial selling. In contrast, long-term holders continue to treat Bitcoin as a hedge against inflation and remain undeterred by recent price drops.
Meanwhile, macroeconomic events are shaping market behavior. Last week, the U.S. Federal Reserve decided to keep interest rates at the current levels, influencing risk sentiment. Later this week, the Bank of England will publish the latest version of its monetary policy report, and it is predicted that it may reduce the rates by 0.25 points to 4 percent.
This act can be used to restore trust in the market and boost crypto assets such as Bitcoin. Some Wall Street analysts, under the pressure of President Donald Trump’s administration, are already anticipating a Federal Reserve rate cut in September.
Technicals now point toward a possible short-term recovery as the 4-hour MACD has flashed a bullish crossover while the RSI has rebounded from oversold levels. These signals suggest that the recent downward move may be losing momentum.
Source: Tradingview
Despite a short-term dip below support, whales have continued to accumulate Bitcoin at a significant pace. This heavy buying by long-term holders contrasts with short-term trader caution and may offer a strong foundation for a mid-term price rebound.
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