Bitcoin whales take advantage of recent flash crash to buy BTC at a discount

As new buyers line up on exchanges to buy the Bitcoin dip, analysts expect the asset to retest the $55,000 level. 

Whales continue accumulating through the cascading liquidation, bullish on BTC

Willy Woo, a Bitcoin on-chain analyst argues that contrary to common belief, the recent correction in BTC was not triggered by large wallet investors selling their holdings. 

Instead, whales have been significantly buying BTC, increasing their holdings throughout the drop. 

Historically, when large wallet investors increase their holdings and accumulate BTC, a price rally follows. According to Woo, a large Over the Counter (OTC) sale was broken up and distributed across spot markets, triggering a pullback that caused the cascading liquidations. 

Analysts expect a potentially volatile period ahead for Bitcoin, as nearly 336,000 traders positions were liquidated in Tuesday’s crash. 

Alex Mashinsky, the CEO of the Celsius Network is of the opinion that new buyers entering the market are likely to push the asset past the key resistance zone at $55,000, to set a new high in 2021. 

Mashinsky says, 

I am still holding my projections that we will be hitting the $140,000 to $160,000 levels. It might take us into Q1 [first quarter] of next year because of this kind of flash crash and clean-up we have seen with the Chinese miners. But it’s definitely going higher.

According to pseudonymous analyst @DaanCrypto, BTC is at an important level to watch. If Bitcoin holds the current price level, the analyst expects an extended rally in 2021.

FXStreet analysts expect Bitcoin to continue upward climb and target the $57,000 level next.