After the nearly 20% collapse in BTC’s price, the cryptocurrency spent the next day consolidating and re-testing the 200-day critical moving average at $ 46k.
BTC managed to hold the level for the daily close, a positive sign. In the short term, it is important to continue holding $ 46k, complete long liquidations and initiate a recovery to recover $ 47.2, the bottom of the green zone.
The strong hands holding the older coins did not sell
Although BTC declined slightly the day after the steep drop, data on the chain continues to firmly show long-term holders and entities holding older coins continue to pile up, showing no signs of whale exit liquidity.
Once again, the panic of 3- to 6-month-old cohorts sold the drop. Keep in mind that this group has accumulated BTC between $ 50k and $ 64.8k. It is very sensitive to shakeouts as they have undergone 2 massive drawdowns in the last few months.
Yesterday the miners sold a small part of their holdings and today the outflows of the miners have remained stable as for the whole year. In short, the miners are back in accumulation and are showing no interest in selling BTC at current levels.
Out of Leverage – Long liquidations that cool down
Over the past 2 days, futures open interest has continued to consolidate with a slight drop below $ 9 billion. The long liquidations have cooled, which weakens the short-term selling pressure. With price consolidation with wedge formation, declining volume and squeezing Bollinger bands on the hourly chart, this suggests that a potential move is coming.
In the short term, it is important to see long liquidations cool as this will help prepare BTC to make a higher move. Technical data on the hourly and 4-hour chart has flattened out, indicating that a short-term support base has been built and the price is preparing for a move.
It would be nice to see BTC recover $ 47.2k, a heavy support / resistance zone, according to the UTXO Realized Price Distribution metric. Retrieving this key level will be a short-term bullish sign for BTC.
So far, it’s good to see BTC hold the 50-day moving average at $ 44.7k, as this level serves as a solid support during powerful bullish trends.
The third largest BTC whale buys 1,955 BTC in 2 days
The third largest BTC whale has accumulated this decline, adding 1,955 BTC over the past 2 days, from $ 46.1 to $ 46.8K. This is the biggest buy since June 2021. If this buy turns into a trend, it can be seen as a very bullish signal. Keep in mind that the whale entity still has hundreds of millions of capital ready to distribute after selling 9,000 BTC in the last month, potentially to break even and rebalance.
With on-chain metrics on a sharp upward trend in improving short-term technical data, we can expect the start of a recovery following the massive liquidation event. If Bitcoin manages to return above $ 47.2,000, this will likely create further bullish momentum in an attempt to recover $ 50,000.
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