Bitcoin Whales Drive FOMO as BTC Price Nears $67K Resistance

Key Takeaways:

1. Bitcoin whales exhibit FOMO sentiment as BTC price approaches $67,000 resistance, signaling potential bullish momentum.
2. Whales are accumulating BTC in the $1-$10 million order category, with wallets holding 1,000 to 10,000 BTC showing increased activity.
3. Analysts anticipate a surge in Bitcoin demand post-halving, with the daily new supply estimated to drop to $30 million, potentially driving up prices.
4. Despite the halving reducing daily coin issuance, average daily net inflows from spot Bitcoin ETFs remain significantly higher, indicating sustained investor interest.
5. Growing adoption of direct custody among investors and decreased miner selling suggest a tightening supply side, contributing to Bitcoin’s resilience against price correction.

Read More: Bitcoin Price Prediction

Bitcoin (BTC) continues to exert pressure on crucial resistance levels as April 24 approaches, with recent data indicating significant activity among whales “buying the dip.” Despite staying within a tight range, BTC price action managed to circle $67,000 after a boost in the latest daily close.

BTC/USD | Source: TradingView

Whale activity has been particularly noteworthy, with large players showing a keen interest in accumulating BTC amid ongoing price fluctuations. Current data from monitoring resource CoinGlass reveals substantial bid and ask liquidity levels, with a significant bid wall of approximately $35 million on Binance absorbed during the daily close. The bulk of ask liquidity now sits between $67,000 and $67,500, indicating a strong battle between bulls and bears for control over key price levels.

🐳 #Bitcoin‘s key whale tier holding 1K-10K $BTC are supporting this rise, and have now accumulated 266K more $BTC since the start of 2024. This translates to an accumulation of 1.24% of the entire supply. The crowd is also showing a high degree of #FOMO. https://t.co/fNSTOERzXo pic.twitter.com/qaJmQJfFca

— Santiment (@santimentfeed) April 24, 2024

Furthermore, insights from trading resource Material Indicators highlight the dynamic nature of liquidity placement and its impact on price action. The tightening of the active trading range between $62,000 and $68,000 underscores the intensity of market activity and the significance of key support and resistance levels. Notably, whale behavior, particularly among wallets holding between 1,000 and 10,000 BTC, reflects a growing sense of “FOMO” (fear of missing out) as these entities continue to accumulate significant amounts of BTC. This accumulation trend, coupled with rising market interest from traditional finance sectors, suggests a bullish outlook for BTC price trajectory in the near term.

Analysts at QCP Capital have described the current market environment as experiencing an “unsettling quietness,” with BTC trading in a narrow range between $60,000 and $73,000. Despite concerns over geopolitical tensions and previous supply halving events, market volatility has decreased, potentially paving the way for a significant market shift. Notably, interest in spot Bitcoin exchange-traded funds (ETFs) from traditional financial institutions like BlackRock indicates growing institutional confidence in BTC as an asset class.

Dip in Bitcoin Issuance | Source: Glassnode

Looking ahead, analysts at Bitfinex estimate a significant drop in new BTC supply added to the market post bitcoin halving, potentially leading to a supply-demand imbalance favoring higher prices. With daily coin issuance expected to decline to $30 million per day, significantly lower than the average daily inflows into spot-based ETFs, the stage is set for a potential surge in BTC demand. Additionally, increasing investor interest in direct custody of BTC coins further strengthens the bullish case for BTC price appreciation in the coming months.

In summary, the convergence of bullish whale activity, decreasing market volatility, and growing institutional interest paints a positive picture for BTC’s price trajectory in the near to mid-term. Traders and investors alike should closely monitor key support and resistance levels, as well as emerging market trends, to capitalize on potential opportunities within the dynamic crypto landscape.

Source: CoinTelegraph / CoinDesk