Despite bearish market sentiment for Bitcoin (BTC), the world’s biggest cryptocurrency by market cap, it seems that this trend may not last for long. On September 17, 2024, the crypto analytic firm CryptoQuant shared a post on X (previously Twitter) indicating that new whales and Binance traders are actively capitalizing on the current market sentiment by significantly buying the dip.
Whales Buying the Bitcoin Dip
The post on X also noted that the old whales continue to hold their BTC. This market sentiment and current whale activity signal market stability and potential price growth in the coming days.
However, if we look at the recent whale transactions, it appears that whales are showing strong interest in buying Bitcoin. On September 16, 2024, First Digital Lab transferred nearly $80 million FDUSD to Binance, potentially to buy Bitcoin. If this happens, we may see a significant price rally.
The last time the firm moved a significant $145.5 million FDUSD to Binance, the BTC price experienced a price jump of over 6.7% from $60,000 to $64,000.
Current Price Momentum
As of now, Bitcoin is trading near $57,800 and has experienced a price decline of over 3% in the last 24 hours. During the same period, its trading volume has skyrocketed by 125%, according to Coinmarketcap data. This rising trading volume signals higher participation from investors and traders amid the price decline.
Bitcoin Technical Analysis and Key Levels
According to expert technical analysis, BTC is at a crucial support level of $57,500 and is trading below the 200 Exponential Moving Average (EMA) on a daily time frame. The 200 EMA indicates whether an asset is in an uptrend or downtrend.
Based on the historical price momentum, if BTC closes its daily candle below the $57,000 level, there is a high possibility it could fall by another 5% to the $54,000 level in the coming days.
However, the BTC’s open interest has declined by 2%, indicating that traders are either liquidating their positions or hesitating to build new positions due to high volatility.
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