Bitcoin’s volatility is a characteristic that can easily alter the holdings of investors. Some will see a downturn as a sign of the end of their accumulation period and their expansion. However, there will be some who suffer significant losses due to a dip.
Bitcoin is on a dip as it reaches its monthly low at $39,000 in just a few days after hitting $40,000 Many people expected that Bitcoin would exhibit a bearish trend over the next few days. However, events proved otherwise.
Bitcoin has gradually taken a downward tour by going into a 37K – 40K region. Some whales have had the chance to make large purchases of Bitcoin during the recent plunge.
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Minkyu Woo, a CryptoQuant technical analysts, said that large amounts of coins were being moved to spot exchanges as a result of the Bitcoin selloff.
He mentioned the possibility of whales buying a considerable amount of BTC since the outflow size could only proceed through the check for spot exchanges’ top 10 BTC outflows.
Analysis of the Bitcoin Price Movement
According to Woo, the 37K – 40K mark stands as the BTC price range in the crypto’s critical accumulating phase. The move began in March 2022. Woo also advised investors that they should keep or buy more dips, if at all possible.
Spiked cases have occurred in the past. outflow volumeA significant amount of BTC was sent via exchanges. However, a sudden reversal in the market’s sell-off came as the crypto price climbed up.
Recently, events followed the same pattern. Bitcoin lost all its money and moved to $41K.
Woo also explained that Bitcoin is now below 200 MA support since the fourth quarter of 2020. This would mean that BTC will have greater accumulations of smart money.
Woo’s chart showed the BTC dipping into the bottom and subsequent spike and buying interests.
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As Bitcoin showed its bearish tendency, this action also reflects the state of the wider crypto market. Ethereum is the only cryptocurrency that has seen significant declines, with its price falling to below $3K. Other prominent altcoins have also been affected by the price movement.
The crypto market seems to be moving higher, with a recovery trend that began today. Ethereum returned to the $3,000 level, with BNB within the $400 range. The recovery trend is also being followed by altcoins.
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