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Bitcoin has been caught in the middle of a tempest recently, with its price witnessing significant volatility. The current market price for Bitcoin sits at $29,072, seemingly adrift with no immediate support level, as the 50 exponential moving average (EMA) has been breached and the 200 EMA lies far below.
However, one intriguing development has captured the attention of market analysts: Bitcoin whales, those who hold vast amounts of Bitcoin, are continuing to accumulate more of the leading cryptocurrency. They are doing so even amid the current market turbulence and are not yet moving to secure their profits.
Data from IntoTheBlock's balance by holdings indicator, which measures the total volume of cryptocurrency held by a selected group of addresses, indicates that Bitcoin whales are bullish about the future of the token. This continuous accumulation signifies a positive dynamic in the market, suggesting that these major investors anticipate an upcoming price increase.
Furthermore, the next Bitcoin halving is anticipated to occur in 2024, and based on historical trends, we can expect a new market cycle to commence. The halving event, which reduces the reward for mining Bitcoin blocks by 50%, has previously triggered significant price rallies. Bitcoin whales' accumulation behavior might be a strategic move to prepare for the next bull run post-halving.
This continuous accumulation by whales underscores the fact that even amid market uncertainties, major investors are banking on Bitcoin's long-term potential. However, retail investors should trade carefully, understanding that the cryptocurrency market is characterized by high volatility, and that investing should always be done based on comprehensive research and risk tolerance.
Dan Burgin
Alex Dovbnya
