While Bitcoin BTC/USD faces resistance near $53,000 and struggles to find sustained momentum, large investors, often referred to as "whales," are sending a different signal.
What Happened: According to Ki Young Ju, CEO of cryptocurrency analytics firm CryptoQuant, Bitcoin accumulation addresses saw a record-breaking net inflow of 25,300 BTC on Feb. 19, the highest single-day influx ever recorded.
Accumulation addresses, as defined by CryptoQuant, are characterized by several specific criteria:
- No outgoing transactions,
- A balance of over 10 BTC
- Exclude both exchange and miner addresses
- Received at least two incoming transactions
- Active within the last seven years
The surge in Bitcoin accumulation on Feb. 19 indicates robust buying activity among holders who are bullish on the long-term prospects of Bitcoin.
Also Read: Forget Bitcoin? This Top-50 Altcoin Could Explode 1,400%, Analyst Says
Why It Matters: This news comes against the backdrop of a challenging period for Bitcoin.
Just days after the cryptocurrency reached new 26-month highs of $53,000, it faced considerable sell-side pressure that threatened to push it below its recent trading range.
The downturn was notable at the Feb. 21 Wall Street open, as Bitcoin struggled to maintain its momentum in the face of firm resistance levels.
The anticipation of buyer interest surrounding the introduction of spot exchange-traded funds (ETFs) was unable to reverse the negative sentiment.
Additionally, the trading firm QCP Capital pointed to high funding rates as a contributing factor to Bitcoin's price weakness.
According to QCP Capital's market update, such elevated funding levels are typically unsustainable, suggesting that a price pullback might be imminent following the cryptocurrency's strong performance.
QCP Capital's observations were corroborated by trading patterns in Asia, where Bitcoin and Ethereum ETH/USD experienced notable selling pressure.
Price Action: At the time of writing, Bitcoin was trading at $51,327, down 1.5% over the past 24 hours, as reported by Benzinga Pro.
Read Next: Big Banks Lobby For Bitcoin ETF Role, Urge SEC Rule Change
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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