When Bitcoin’s price was once again refused near the $60k mark, it was an excellent opportunity for whales to scoop up more. When the market saw an uptick in selling pressure on April 6, the price of Bitcoin fell from $59k to $55k.
About the fact that the coin failed to break through its immediate opposition, data revealed that crypto whales deliberately purchased the dip. According to data provider Glassnode, 476 million USDT is invested in cryptocurrency exchanges in order to purchase the digital commodity.
Moskovski Capital’s CIO Lex Moskovski posted the Glassnode map to show the massive increase in USDT accumulation on exchanges.
“$476M USDT deposited to exchanges in an hour yesterday to buy the dip.
Every time we dip, there is no shortage of the cash on sidelines, it seems.”
The last time such a large influx of USDT was seen on exchanges was in March, when the price of BTC reached an all-time high of $62k, only to see small corrections soon after. This flood indicated a positive investor outlook for the digital asset’s valuation appreciation.
As Moskovski pointed out, if the value of Bitcoin falls, more capital enters from the sidelines. This was made possible by the digital asset’s development during the last year since the start of COVID-19.
Although more capital reached the market, some traders profited by closing their positions until the coin fell to $55k. Within hours, almost $648 million in longs is liquidated.
Meanwhile, on-chain dynamics were helping the BTC market’s bullish view.
“#Bitcoin on-chain volume as a $1 Trillion asset is now equivalent to 11.6% of supply.
Over 2.164M $BTC have been spent on-chain at prices above $53.5k.
This is convincingly the largest on-chain volume cluster since $11.6k.”
With both Bitcoin outflow and inflow rising, it will be exciting to see what the next major step in the BTC market will be. Although many speculate a new all-time record, some critics have expressed scepticism, expecting a major correction.
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