Bitcoin whales bought in during dip, but this indicator doesn’t bode well

Bitcoin BTC whales bought in during dip but this indicator doesnt bode well

The bitcoin (BTC) bulls have still not been able to push the price back up. The price instead fell out of a consolidation pattern last night and thus is once again looking for the price zone low in the $30,000 area. However, data from blockchain analysis company Santiment shows that whales have started hitting again during the dip of recent weeks.

In a blog article published today, Santiment shows that the number of addresses holding 100 to 10,000 bitcoins has been increasing again since the dip on May 19 to $30,000. Despite the dip, the whales are buying again. However, it is important to know that Santiment shows data until June 5. It is not clear how the whales behave at the moment. However, the fact that they have continued to buy in recent weeks despite the falling price can be seen as a positive sign.

Another positive sign is that the bitcoin balance on exchanges is back in a declining trend. The assumption is that investors take their BTC off the exchanges to keep it somewhere else. This with a view to a long-term strategy. Just before the dip, which started in May, we saw an increase in the number of bitcoins on the exchanges. So that trend seems to have reversed. Of course, this picture could change again if the current downward movement continues.

However, a less positive signal was shared by analyst Timothy Peterson. On Twitter, he states in a tweet that bitcoin has been trading below the 200-simple moving average (SMA) for 17 days. And this is important because:

“Bitcoin price has fallen below 200-SMA for 17 consecutive days. This metric has always marked the end of a bull run and the beginning of a bear market.”