Bitcoin whales accumulate as Bitfinex long calls surge

The central theses

  • More than 3,200 long Bitcoin positions were filled in the past week.
  • Meanwhile, whales added 60,000 bitcoin to their stocks over the same period.
  • A daily close above $ 49,650 could kick off the next stage for the top crypto asset.

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Investors appear to be getting back into the market as long positions in Bitcoin rise as whales add tokens to their holdings. While the recent surge in buying pressure looks encouraging, BTC still has one crucial obstacle to overcome.

Bitcoin buy orders are executed

Whales have turned their attention back to Bitcoin.

The flash crash of September 7th put market participants in the fear. Now, some of the crypto industry’s most respected technical analysts claim that the $ 53,000 rejection of Bitcoin could lead to disastrous prospects.

For example, the analyst, who operates under the pseudonym Dave the Wave, believes it is the flagship cryptocurrency drops towards $ 30,000. They indicated that the recent downward pressure could accelerate into a more pronounced downtrend as the convergence divergence of the moving average, or MACD, is one bearish cross on the BTC monthly chart.

It’s the monthly MACD, still high [and just crossed bearishly]which gives weight to further price consolidation.

– dave the wave🌊 (@davthewave) September 13, 2021

Despite the bearish worst-case scenario, several fundamental factors suggest that some investors have used the fall in prices to buy Bitcoin at a discount.

The number of long bitcoin positions on Hong Kong-based cryptocurrency exchange Bitfinex has hit a higher high for the first time since July 22nd. More than 3,200 long positions have been created in the last week alone, suggesting that some traders have bought the dip.

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BTC long positionsSource: TradingView

Similarly, the behavior analysis platform Santiment shows that whales are clustering.

Addresses with 10,000 to 100,000 BTC bought over 60,000 BTC worth around $ 2.82 billion in the same period. This sizeable number of tokens was also removed from well-known cryptocurrency exchanges, easing the selling pressure behind Bitcoin.

Bitcoin onchain activitySource: Santiment

As buy orders pile up, IntoTheBlock’s In / Out-of-the-Money-Around-Price (IOMAP) model shows a major supply barrier over Bitcoin. About two million addresses previously purchased nearly 900,000 BTC between $ 46,900 and $ 49,650.

Only a daily candlestick closing above this resistance wall would signal the resumption of the uptrend.

Bitcoin transaction historySource: IntoTheBlock

Bitcoin, on the other hand, needs to hold above the support zone of $ 44,000 to $ 46,800 to avoid further losses. Cutting through this significant area of ​​interest can encourage investors to sell their BTC to prevent their investments from “going out of the money”. If so, it could see a downturn to $ 38,000.

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