As bitcoin dropped to a monthly low at $39,000 after a few days of consolidating above the $40,000 mark, there was a growing bearish sentiment regarding its immediate price action. When the bears came out to push bitcoin south, dipping into the 37K – 40K area, some considered it an excellent opportunity to accumulate.
High Volume of BTC Spot Exchange Exits
Minkyu Woo, a technical analyst at CryptoQuant, claimed that as BTC selling continues, noticeable volume has recently been seen on spot exchanges. The whales may have bought a large sum of BTC, Woo hinted, as this output size can only be made possible by “checking the Top 10 BTC outputs for spot trades.”
Woo saw the price range of BTC between 37K ~ 40K as a critical accumulation phase which has been ongoing since Mar 2022 and urged investors to hold or buy the dips if they could. Previously, in the wake of scenarios where the outflow volume spiked, as a considerable quantity of bitcoin was being removed from exchanges, upward price action soon reversed the market’s short-term bearish sentiment.
Something similar also happened now as BTC recouped all losses and even disputed $41,000.
Furthermore, Woo said that as long as bitcoin has been trading below the 200 MA support line since the fourth quarter of 2020, a sufficient amount of “smart money” would start accumulating the largest cryptocurrency by market capitalization. As Woo’s chart indicates, BTC dipped to the “lower zone” and buying interest also increased accordingly.
Uncertainties Ahead of BTC
Bitcoin’s bearish sentiment was mirrored across the broader crypto market, with Ethereum also dropping below the $3,000 level and major altcoins entering the red sea.
Nevertheless, the landscape looks totally different today as almost the entire market has begun its recovery. Ethereum clawed back $3,000, BNB is well above $400, etc.
