Bitcoin Whales More Confident as BTC Nears $60K – Should You Buy?
The whale group has tried to absorb the strong selling pressure, taking advantage of the opportunity to "fish the bottom".
However, they have yet to establish a clear market bottom.
Bitcoin [BTC] is at a crucial crossroads as bulls struggle to break resistance after a September surge that took the price to nearly $65,000.
The price is currently at $60,480, but the same cycle from late July has not yet occurred. The bears have retreated, and the bulls are targeting the next resistance level at $68,000.
Bear pressure remains, raising concerns of a deeper decline. If the bulls fail to hold, BTC could fall back to $55,000. However, a notable event has sparked hope, leading investors to predict that a short squeeze could occur.
Bitcoin Whales' Confidence Is Growing
Whales holding between 1,000 and 10,000 BTC have shown confidence in Bitcoin's future growth, purchasing more than 50,000 BTC in the past 10 days, worth approximately $3.14 billion.
See also: Dogecoin surges as RSI warns of correction
Interestingly, this wave of buying coincided with a period when Bitcoin was under pressure from short sellers after rallying close to $63,000. Those purchases prevented a major correction, supporting Bitcoin's move toward the $65,000 resistance level.
Source: Coinglass
Simply put, in mid-September, shorts regained control of the derivatives market, pressuring BTC to correct. However, whale accumulation eased this pressure, creating a favorable environment for a short squeeze.
If a similar trend repeats, short-selling liquidations could be triggered, becoming the impetus for a major rally.
Putting short positions at risk
Currently, the rally to $61,000 creates a strong liquidity pocket containing about $40 million in leverage. Reaching that range would put short sellers in danger, forcing them to close their positions and pushing BTC higher.
Source: Coinglass
Conversely, failure to hold $60,000 could trigger $37 million in liquidations, opening the way for shorts to return. Without a counterweight, this could lead to a sharp correction to $55,000 as long positions are closed.
TinTucBitcoin highlights several conditions to watch to avoid a correction and consolidate the $60,000 level as a “bottom-fishing” opportunity.
A “flip” will signal a market bottom
Typically, whale accumulation patterns are accompanied by Bitcoin testing a market bottom.
According to TinTucBitcoin, a pullback to $60,000 is necessary to remove “weak hands” – those who bought BTC at previous support at $55,000 – prompting them to take profits and exit the cycle.
Now, the key is to turn the $60,000 resistance into support, encouraging new investors to enter the market. This transition will allow whales to target the market bottom and push BTC closer to $66,000.
Source: Glassnode
Net inflows have regained control after three days of increased BTC supply, suggesting that $60,000 is a good buying opportunity. However, a stronger push is needed to confirm a strong bull rally.
In short, if the bulls take advantage of this opportunity by buying aggressively and turning $60,000 into support, the recovery could take BTC back to $66,000.
See also: Price Analysis 9/18: BTC, ETH, BNB, SOL, XRP, DOGE, TON, ADA, AVAX, SHIB
Conversely, if bear sentiment prevails without any force absorbing the pressure, panic could ensue, allowing shorts to maintain control and potentially pushing BTC to around $55,000 – setting the stage for the next market bottom.
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