|

Bitcoin whales 'bought the dip' as orders for $100K or more hit all-time highs

Bitcoin (BTC) whales and institutions alike have made the most of the recent BTC price "dip" by buying big, data suggests.

In an update on March 9, on-chain analytics service Material Indicators noted that buy orders of $100,000 and higher on Binance — the biggest cryptocurrency exchange by volume worldwide — are reaching all-time highs.

Big Bitcoin buyers don't hesitate

In stark contrast to orders worth less than $100,000, larger buys are more frequent than ever before in Bitcoin's history. 

Smaller allocations have plummeted in 2021, matching an existing narrative that institutions are scooping up liquidity on exchanges which surfaced during the recent bull run.

"The $100k - $1M class is now also about to make a new ATH," Material Indicators commented on Twitter alongside a chart.

"Meaning, they bought the dip."

Chart

BTC/USD vs. order volume chart. Source: Material Indicators/ Twitter

Material Indicators previously voiced concerns about this week's price rise, arguing that whales could "sell into" the surge, producing a repeat of the run to $58,000 all-time highs and subsequent 25% correction.

While this has so far not come to pass, analysts also noted that macroeconomic factors were also having a different impact to that which was expected.

Whale orders declined after news that the United States' $1.9 trillion stimulus package had passed the Senate, while China providing support to tech stocks had the opposite effect. As Cointelegraph reported, tech had led a dramatic change of fortunes on equities markets.

$54,500 surge followed major Coinbase buy

Later, meanwhile, another batch of nearly 12,000 BTC left professional trading platform Coinbase Pro as an example of major BTC allocations continuing at current prices.

"That happened just before the recent surge in price. Nice coincidence," quant analyst Lex Moskovski commented on data from fellow on-chain analytics resource Glassnode.

BTC/USD hit two-week highs of $54,500 earlier on Tuesday.

Chart

BTC/USD vs. Coinbase outflows chart. Source: Glassnode/ Twitter

Zooming out, the increasing institutional involvement around Bitcoin could fuel its entry as a standard for investors alongside traditional plays.

"We do think it will behave, actually, I would say more like the fixed income markets, believe it or not," Cathie Wood, founder and CEO of ARK Investment Management, told CNBC this week.

Binance orderbooks show the next major BTC/USDT resistances for the bulls are around $58,000 — the all-time high — and $59,500.

Author

Cointelegraph Team

Cointelegraph Team

Cointelegraph

We are privileged enough to work with the best and brightest in Bitcoin.

More from Cointelegraph Team
Share:

Editor's Picks

Crypto Today: Bitcoin, Ethereum, XRP trade under sustained selling pressure despite mild ETF inflows

Cryptocurrency prices remain under pressure as a risk-off mood persists on Friday, with Bitcoin consolidating its losses above $62,000. Altcoins, including Ethereum and Ripple, are extending their weakness, trading near lower support levels around $1,600 and $1.12, respectively.

Bitcoin Weekly Forecast: After the bloodbath, everyone looks at $60,000

Bitcoin (BTC) hovers above $62,000 at the time of writing on Friday, weighed down by growing risk-off sentiment due to persistent geopolitical tensions in the Middle East and sticky macroeconomic uncertainty.

Cardano hits five-year low even as Hoskinson clarifies "break" isn't an exit

Cardano price is down 10% at press time on Friday, extending losses over 30% so far this week amid Charles Hoskinson's clarification that "break" isn't an exit. A reactionary spike in on-chain activity and social chatter, reflecting a strength of community, but fails to absorb the price decline.

Arthur Hayes' “Holy Trinity” is dead: Exits Zcash after Orchard Pool exploit

Arthur Hayes dumped his entire Zcash holdings on Friday, a day after selling his HYPE and NEAR holdings. Zcash is down 13% so far on Friday, extending the 26% drop from the previous day.

Bitcoin: After the bloodbath, everyone looks at $60,000
Bitcoin (BTC) hovers above $62,000 at the time of writing on Friday, weighed down by growing risk-off sentiment due to persistent geopolitical tensions in the Middle East and sticky macroeconomic uncertainty. The institutional sell-off continued to wreak havoc on capital flows, with spot Bitcoin Exchange-Traded Funds (ETFs) recording billions in outflows.