Bitcoin (BTC) had a bloodbath overnight following a strong sell-off below the 200-period simple moving average at the H4 chart. Now it seems like the price wants to settle around $60,000, where on-chain metrics say that many active wallets are actively purchasing there.
Moreover, whales are also back on an activity to make huge maneuvers like the latest one from the third-largest BTC whale address.
A “Common Behavior”
According to Blockchain.com tracker, such whale added 207 BTC when the price was exchanging hands around $62,000. That behavior was seen when the bull-run gathered momentum across the crypto markets during 2017. These holdings are worth $12,683,076 as of press time.
Colin Wu, a well-known independent crypto-journalist based in Asia, said that address increased its holdings by 635 BTC during the month so far. That said, whales seem to be getting positioned to hedge their Bitcoins by transferring big amounts of money to derivatives exchanges and thus shorting them out.
“This pattern is obvious during the last bull run (2017) when the All Exchanges To Derivative Exchanges indicator peaked many times, and the price experienced a jump after each time. Right now, during the Bullrun, the metric has peaked four times, indicating whales are buying and hedging their coins continuously,” one contributor at CryptoQuant, an on-chain analytics company, commented on the maneuver.
Bottoming At The Current Stage?
However, price action still shows that bulls are reluctant to crack above the recent all-time highs, which implies that Bitcoin wants to gather momentum in the critical demand area of $60,000.
It converges with the 200 SMA and the lows from October 28 that helped boost the rally in the world’s largest cryptocurrency by market capitalization.
Meanwhile, the RSI indicator at the H4 chart is signaling an oversold condition for BTC, suggesting that the price could have found a temporary bottom at this stage and which eventually could lead to another rebound to allow bulls to resume the uptrend and going to challenge highs around $66,000 in a first degree.
This article was originally posted on FX Empire
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