On-chain analytics firm IntoTheBlock suggests that Bitcoin whales might have swooped back into action. The largest inflow since February, with 116,000 BTC transferred, was spotted via the large holders inflow metric, which tracks the funds going into addresses belonging to whales.
Whales are moving— IntoTheBlock (@intotheblock) June 16, 2022
Large Holders Inflow tracks the funds going into addresses belonging to whales
Yesterday we spotted the largest inflow since Feb with 116k $BTC, pointing to a potential bottom in price as these addresses tend to buy in size following significant correction pic.twitter.com/MnRZygdYxB
"This is pointing to a potential bottom at price as these addresses tend to buy in size following a significant correction," IntoTheBlock researchers wrote in a note.
The collapse of crypto is the canary in the coal mine. Crypto told us ahead of time that #stocks were going to be in trouble. And until we find a bottom here in crypto, we're not going to get a bottom in anything else.— Scott Minerd (@ScottMinerd) June 16, 2022
The significance of Bitcoin reaching a bottom in its price is well cited by Guggenheim's Scott Minerd, who wrote in a recent tweet: "The collapse of crypto is the canary in the coal mine." Crypto told us ahead of time that stocks were going to be in trouble. And until we find a bottom here in crypto, we're not going to get a bottom in anything else."
Many newer entrants are already underwater as Bitcoin hovers around December 2020 lows. The bear market for Bitcoin has entered its "deepest and darkest" phase, according to analysts at Glassnode, with even long-term holders who have ridden it out until now under enormous pressure.
According to Glassnode's realized price indicator, which calculates the average purchase price of all Bitcoins in circulation, BTC is now trading around $3,000 below its current realized price of $23,430. Bitcoin dropped as low as $20,071 on June 14.
Bitcoin battles for support above $20,000
According to IntoTheblock data shared by a crypto analyst, Ali Martinez, the most significant support level for Bitcoin extends from $21,030 to $21,630. BTC must hold above this level to avoid a downswing to the next interest zone around $19,680. On the contrary, if BTC closes above $22,300, it could run to $24,670.
At press time, Bitcoin was trading down 2.37% at $20,827.