Traders are now taking advantage of the Bitcoin dip.
As Bitcoin price was once again rejected near the $60k range, it is now a perfect time for the whales to grab even more. Last April 6, BTC price dropped from $59k to $55k.
Although the coin failed to overcome its immediate resistance, data suggested that crypto whales have actively bought the dip. According to Glassnode, 476 million UDT have been deposited to cryptocurrency exchanges to buy the digital asset.
The CIO of Moskovski Capital Lex Moskovski has shared the Glassnode chart to show the giant spike in USDT accumulation on the exchanges.
“$476M USDT deposited to exchanges in an hour yesterday to buy the dip. Every time we dip, there is no shortage of cash on the sidelines, it seems.”
CIO of Moskovski Capital Lex Moskovski
The last time that a massive income of USDT on exchanges was witnessed was in March when the BTC’s price hit an all-time high of $62K but has seen minor corrections right after. This influx has suggested a positive sentiment in the market for the appreciation of the digital asset’s value.
As Moskovski has noted, every Bitcoin’s value drops, there has been more money entering from the sideline. This has been possible because of the growth of the digital asset has been witnessed in the previous year ever since the start of COVID-19.
While even more money has entered the market, some traders have realized the profit as they closed their position before the coin eventually dropping to $55k. Around $648 million in longs have been liquidated in just a matter of hours.
Concurrently, on-chain fundamentals have been supporting the strong outlook of the BTC market. Glassnode stated:
“#Bitcoin on-chain volume as a $1 Trillion asset is now equivalent to 11.6% of supply. Over 2.164M $BTC have been spent on-chain at prices above $53.5k. This is convincingly the largest on-chain volume cluster since $11.6k.”
With the outflow and inflow both increasing for Bitcoin, it will be interesting to witness what the next big move in the BTC market will be. While many are speculating a new all-time high, some doubtfuls have exclaimed a caution as they are expecting a large correction to set in.
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