By
Mayowa Adebajo
May 13th, 2024
As the market continues to swell, data has shown that big players bought into the Bitcoin dip, with heavy orders that may have encouraged the BTC pump.
The Bitcoin market is experiencing quite the trajectory as traders have continuously pumped in money, despite corrections. According to recent data, Bitcoin whales and several institutional players bought into the recent Bitcoin dip, acquiring considerably large amounts. The large purchases have stayed consistent, setting the world’s largest cryptocurrency asset for bigger wins.
According to a March 9 tweet from on-chain analysis outfit, Material Indicators, Binance sees a heavy increase in the number of Bitcoin buy orders worth at least $100,000. This upward trajectory on the world’s largest exchange platform by volume is cementing new all-time highs for the company.
During the recent dip, most of the inflow into the market was from whales and institutions. For the first time in Bitcoin’s history, purchases worth more than $100,000 were more frequent than smaller buys. The number of smaller purchases has considerably crashed since 2021 began. This development gives credence to the fact that the bull purchases are eating up asset liquidity in the market. Currently, many market players believe that the current whale purchase trajectory could cause some scarcity, however later than sooner.
The recent Bitcoin movement has also raised some concerns. Material Indicators was recently of the opinion that whales could crash prices by offloading their positions. Basically, as prices rose, prominent players could sell off their funds. According to the analytics service, this could cause another surge into $58,000, followed by a similar 25% retraction.
Bitcoin Dip and Market Movements
Recently, almost 12,000 BTC was traded on Coinbase Pro. According to analyst Lex Moskovski, 11,554 Bitcoin left Coinbase shortly before the recent surge. Describing it as a “nice coincidence,” Moskovski draws a line between the trade and the subsequent surge.
Whether or not it was caused by a Bitcoin dip, the continuous bull run is commendable as a great incentive for institutions. While these institutional players may not abandon traditional channels, there is more confidence that playing in the Bitcoin market would yield considerable returns.
Currently trading at $54,722 after a 1.44% 24-hour rise, Bitcoin seems to have found support at the $50,000 mark. According to an analysis, the king coin’s next resistance level is at $54,000. Generally, if Bitcoin maintains a push above $50k, it would be well on its way to set a new resistance at its current $58k all-time high.
Regardless, Bitcoin’s upward trajectory seems stable. Still above its 50-day volume-weighted moving average, there is a lot of optimism in the Bitcoin market.
There is also the Biden administration’s recent $1.9 trillion COVID-19 stimulus bill to consider. The stimulus bill passage is expected to be bullish for Bitcoin if history is to repeat itself. Back in March, the Trump administration paid stimulus checks to people who dumped the funds into the Bitcoin market. The recent passage could easily cause Bitcoin to retest $58,000 soon.