- Despite efforts by whales, selling sentiment remained dominant in the broader market.
- Market indicators remained bearish on Bitcoin.
Bitcoin [BTC] investors were not enjoying profits over the last few weeks, as the king coin went below $43,000. Moreover, BTC’s growth momentum has declined in the recent past.
Whales used this opportunity to stockpile more BTC. But will their actions be enough for BTC to regain its past glory?
Bitcoin is slowing down
According to CoinMarketCap, BTC was down marginally in the last 24 hours. At the time of writing, the king of cryptos was trading at $42,800.38 with a market capitalization of over $839 billion.
Thanks to the sluggish price movement, market sentiment around the coin also turned bearish. AMBCrypto’s look at CryptoQuant’s data revealed that both BTC’s Coinbase premium and Korea premium were in the red.
This meant that selling sentiment was dominant among US and Korean investors at press time.
Source: CryptoQuant
Crypto Tony, a popular crypto analyst, also pointed out in a tweet that, despite BTC being in a positive trend, it was slowing down.
$BTC / $USD – Update #Bitcoin remains in a positive trend, but slowing down right now. Only a good thing for #Altcoins as they thrive when BTC becomes boring pic.twitter.com/ZxUepAxHL8
— Crypto Tony (@CryptoTony__) February 3, 2024
Though BTC slipping under $43,000 might seems like a cause for concern, whales continued to accumulate more coins. On the 3rd of February, Santiment a tweet highlighting such an episode.
🐳 #Bitcoin is ranging between $41K and $44K, but whale wallets are moving big this week:
🔴 Number of 1K-10K $BTC Wallets: 1,958 on Feb. 1st (Most since November, 2022)
🟡 Number of 100-1K $BTC Wallets: 13,735 on Feb. 1st (Least since November, 2022)https://t.co/MTOnjURnfV pic.twitter.com/QrxW8CH5c2— Santiment (@santimentfeed) February 3, 2024
As per the tweet, the number of wallets with balances between 1,000 and 10,000 BTC increased by 2.5% in just the last six days, which was the most since November 2022.
While that happened, wallets with balances between 100 and 1,000 BTC dropped by over 1%, which was the least since November 2022.
This suggested that the big players in the crypto space were confident in BTC and were hoping for a recovery soon.
Bitcoin to change its course?
It was interesting to note that, while whales were accumulating BTC, miners were getting rid of the coin.
AMBCrypto reported earlier that the quick sell-off of Bitcoin by miners has resulted in a notable reduction in reserves.
To see whether buying pressure from whales would be enough for BTC to change its course, we checked its daily chart.
Read Bitcoin’s [BTC] Price Prediction 2024-25
Our analysis found that both Bitcoin’s Relative Strength Index (RSI) and Money Flow Index (MFI) went sideways.
This indicated that the ongoing dormant price action might continue longer and investors would have to wait longer to see BTC reach new highs.
Source: TradingView
