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Whale buys dip in bulk BTC as Bitcoin “claims” $40,000

As Bitcoin dropped to monthly lows at $39,000 after a few days of consolidating above the $40,000 mark, bearish sentiment has been growing regarding its immediate price action. As bears appear to push Bitcoin south, dropping to the $37K-40K area, some see this as a great opportunity to accumulate.

Minkyu Woo, a technical analyst on CryptoQuant, has stated that as the BTC sell-off unfolded, a notable amount of coins was withdrawn from spot exchanges.

Woo implied that whales may have bought large amounts of BTC, because this scale of outflows was only possible through “checking out the Top 10 outflows of spot exchanges.”

Woo views BTC’s price range in the $37K-40K range as an important accumulation zone that has been in place since March 2022 and encourages investors to hold or buy dips if possible.

In the past, in the face of scenarios where outflows spiked, where a significant amount of bitcoin was withdrawn from exchanges, the bullish action soon reversed the short-term bearish sentiment in the market.

The same is happening now as BTC has recovered all its losses and even challenged $41,000.

Woo added that as of Q4 2020, whenever Bitcoin is trading below the 200 MA support line, large amounts of “smart money” will start accumulating BTC. As Woo’s chart indicates, BTC has sunk into a “bottom zone” and buying interest has spiked accordingly.