Bitcoin Rebounds 6.25% from Local Low, Whales Snap Up $1.5B
On November 29th, Bitcoin (BTC) experienced a significant recovery, rebounding by 6.25% from its local low of $90,742 to above $96,000. This surge in price can be attributed to the "whales" taking advantage of discounted prices during the market correction.
Market Analysis
Data from Cointelegraph Markets Pro and TradingView showed a Bitcoin price recovery taking shape after the recent correction as it held above $95,000. Market participants have observed deliberate posturing by whales, with analysis suggesting they played an important role in the latest BTC price recovery.
Read: "Bought the dip? 3 signs that $90K Bitcoin price was the local bottom"
According to CryptoQuant contributing analyst Caueconomy, "Bitcoin whales took advantage" of the crypto market correction earlier this week, accumulating 16,000 BTC. In a post on X (formerly Twitter), Caueconomysaid that much of the $1.5 billion in Bitcoin was scooped up after almost $4 billion in BTC was sent to exchanges at a loss by short-term holders.
Whale Accumulation and Market Trends
Despite this significant accumulation, "this spot buying volume is not yet sufficient enough to demonstrate a more widespread buy-the-dip pattern, remaining heavily concentrated among institutional players," the analyst noted. Retail trading activity remains "neutral" according to CryptoQuant.
In other words, other investors, such as day traders and retail, must also join the fray to push the price past $100,000. The analyst emphasized that "we will need a larger spot buying volume between retail and institutions to achieve a new ATH."
Historical Patterns
October’s report by Cointelegraph on similar activity when Bitcoin whale holdings reached an all-time high of 670,000 BTC preceded Bitcoin’s rise from the $60,000 levels toward current all-time highs just under $100,000. If history repeats itself, Bitcoin price should benefit from whale accumulation to push it over the $100,000 psychological barrier.
Technical Analysis
At $95,672, BTC’s price sits on strong support on the downside compared to the resistance it faces in its recovery path, according to data from IntoTheBlock. The in/out of the money around price (IOMAP) chart shows that the immediate support sits within the $92,777 to $95,634 price range, where about 490,570 wallets acquired some 441,250 BTC.
Technical Indicators
From a technical perspective, Bitcoin has managed an immediate recovery above $95,000 after exhibiting a V-pattern from the local low at $90,742. As reported by Cointelegraph, the most logical scenario for BTC is to retest the $100,000 resistance level. However, first, a daily candle close above the overhead resistance at $96,400 is needed.
Conclusion
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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