Amidst a downturn in cryptocurrency market volatility, Bitcoin appears to be staging a pivotal showdown as its price flirts with a significant resistance level of $31,000. As market participants hold their breath for a potential breakout, intriguing developments involving Bitcoin whales have added fuel to the speculative fire.
JA Maartunn, the community manager at the crypto analytics firm Cryptoquant, set the stage for anticipation with a tweet earlier this Sunday. Maartunn’s message highlighted a noticeable uptick in activity among Bitcoin whales, particularly those on the BitMEX crypto exchange.
“Bitmex whales have joined the party. During the last night, I’ve got 3 notifications from massive new long positions Something is brewing under the surface,” said Maartunn.
This sentiment was echoed by the pundit’s previous observation on Saturday, highlighting substantial long positions on another notable exchange, Deribit. These observations point towards an atmosphere of anticipation, as major players seem to position themselves strategically in response to market dynamics.
Adding to the intrigue, prominent crypto analyst Ali Martinez provided additional weight to the idea of imminent market movements. In a Saturday tweet, Martinez highlighted the historical correlation between spikes in buy volume on BitMEX and Bitcoin’s subsequent price movements. According to the pundit, the recent surge in the taker buy-sell ratio on BitMEX raises the possibility of a continuation of the ongoing Bitcoin bull market.
“You rarely see big spikes in buy volume on BitMEX, but when you do, $BTC tends to enjoy significant gains. In May 2020, the taker buy-sell ratio rose to 192, leading to a 567% price increase. And in January 2023, the taker buy-sell ratio spiked to 140, resulting in an 88% price jump,” wrote Ali.
“Notice that the taker buy-sell ratio on BitMEX recently surged to 194. If history repeats itself, we could be preparing for the continuation of the BTC bull market,” he added.
The excitement doesn’t end there, as Martinez also revealed a fascinating development involving Bitcoin whales. As per a Sunday tweet from the pundit, in the last two weeks, approximately 10 Bitcoin whales, each holding a minimum of 1,000 BTC (equivalent to at least $29.4 million), have entered the network.
Such a notable influx of substantial holders brings a new dimension of uncertainty to the market landscape, potentially signalling that these whales are either seeking diversification for their portfolios or simply increasing their Bitcoin holdings.
That said, technically, Bitcoin seems poised to take out the $31,000 considering the price has been in a macro uptrend. Recently, veteran markets analyst Sonny Moulder predicted a larger move by Bitcoin toward the $45,000 region. But first, the pundit noted that strategically clearing weaker market participants is essential.
BTC was trading at $29,379 at press time after a mild drop of 0.39% over the past 24 hours.