Don’t panic? ‘Smart money’ whales are waiting to buy Bitcoin at $8,800

摘要： Whales are bidding $8,800 to purchase Bitcoin on major exchanges like Bitfinex following a sharp drop to sub-$10,000.

However, market data shows that whales are preparing to purchase Bitcoin at $8,800 support level. It indicates that a March 13-like drop is unlikely to happen, when BTC dropped to as low as $3,600.

Why did Bitcoin drop, and why are whales bidding?

Analysts primarily attribute the correction of Bitcoin to the sell-off from miners. Prior to the drop, analytics firm CryptoQuant pointed out that mining pools were moving to sell BTC.

After tracking the outflows from major pools, data showed that miners moved unusually large amounts of Bitcoin to exchanges. Shortly thereafter, the price of Bitcoin began to drop, eventually declining to sub-$10,000. The researchers said:

“Miners are moving unusually large amounts of #BTC since yesterday. #Poolin, #Slush, #HaoBTC have taken the bitcoins out of the mining wallets and sent some to the exchange.”

When the trend of Bitcoin initially shifts, it tends to extend to the furthest support or resistance level. On March 13, as an example, BTC flash-crashed to as low as $3,600 before a significant bounce. From April to September, Bitcoin recovered from $3,600 to over $12,000.

As such, whales might be expecting Bitcoin to drop to lower support levels, which include $8,800.

“Nice to see you again Bitfinex whale,” on-chain analyst Cole Garner commented today. “Smart money has their bids sitting at $8800. I expect the bottom will likely be around there.”

The data could indicate that whales anticipate a larger pullback to come in the near future. But it also shows that whales do not anticipate a massive correction relative to Bitcoin’s previous pullbacks.

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詳見全文Full Text： cointelegraph.com

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