SNEAK PEEK
- Whale investors reduce $1M+ transactions since March 22
- Short-term trading is declining, and long-term investing is rising.
- The death cross pattern predicts a downward trend for the BTC price.
The winds of change are blowing in the Bitcoin world, as the number of transactions worth $1 million or more by whale investors has been falling since March 22. This change in activity might have some consequences for the King currency, ranging from reduced trading activity among significant holders to a shift in market sentiment.
Notice that #Bitcoin whale transaction count of $1 million or more has been trending down since March 22.
This trend could have various implications for $BTC, such as reduced trading activity among large holders or a possible shift in market sentiment. pic.twitter.com/GuD3l0QITo
— Ali (@ali_charts) May 1, 2023
The bears got the better of the Bitcoin market during the previous 24 hours, with the price plummeting from a 24-hour high of $28,711.42 to a 24-hour low of $27,680.79. At press time, bearish dominance was still in action, leading to a 1.82% drop to $27,967.64.
During the slump, BTC’s market capitalization and 24-hour trading volume fell by 1.83% and 7.88%, respectively, to $541,463,763,364 and $16,309,176,830. This decline represents a change in activity from short-term speculative trading to long-term investing as more institutional investors join the market and adopt a buy-and-hold strategy for BTC.
In the BTC market, the movement of the shorter-term moving average (50-day MA) from above crossing below the longer-term moving average (100-day MA) shows a negative signal (a death cross) that predicts a likely downward trend in the price of Bitcoin.
This trend, together with the decline in the number of transactions worth $1 million or more, might signal a shift in mood among significant investors and dealers, adding to the downward pressure on Bitcoin’s price. As evidence of this adverse trend, the 100-day moving average (orange) reaches $28842.77, while the 50-day moving average (blue) reaches $28670.16.
The price action movement below both moving averages suggests that the downtrend may continue in the near term, with the next support level at $28,000.
On the BTC USD 4-hour price chart, the Relative Strength Index (RSI) rating of 37.01 and movement southwards and below its signal line indicate that bears are gaining momentum and may push the price further down in the short term.
Because it has not yet reached the oversold territory of 30, there is still room for further downside potential; therefore, traders should exercise caution and wait for a clear reversal signal before considering any long positions.
The Know Sure Thing goes below its signal line on the 4-hour price chart, with a value of -8.8726, indicating that the negative momentum is strong. The movement in the negative zone suggests that selling pressure will likely continue in the near term, and traders should consider short positions unless there is strong evidence of a trend reversal.
Bitcoin faces a bearish outlook as the transaction count of $1M+ by whales declines and a death cross emerges, pointing to a possible downward trend.
Disclaimer: Cryptocurrency price is highly speculative and volatile and should not be considered financial advice. Past and current performance is not indicative of future results. Always research and consult with a financial advisor before making investment decisions.
