Key Takeaways:
- Bitcoin (BTC) lost significant support and traded around $35K
- The flagship crypto risked dropping back to $34K based on bearish technicals.
- The whales below 10K withdraw, but whales above 10K move back in.
YEREVAN (CoinChapter.com) – Bitcoin (BTC) started the weekend at just above $35,000 on May 8, its lowest value since bottoming out at $34,000 on Jan 22. The 10% plunge in the previous three days meant that the digital asset lost a confluence of support that sustained the BTC value throughout the past 18 months.
As CoinChapter previously reported, the BTC/USD exchange rate enjoyed support from a setup dubbed the Rising Channel, most prominent on the weekly chart. The formation consisted of two parallel trendlines that prevented sharp breaks in either direction.
Also read: Bitcoin unstable at $39K ahead of Fed’s scary interest rate hike.
However, the latest plunge broke the Channel’s support, sending Bitcoin value into a freefall towards $34,000. Furthermore, the daily chart didn’t have good news for BTC bulls either. The price action lost another critical support that assisted the flagship crypto throughout the previous three weeks.
Additionally, the digital asset traded below its 20, 50, 100, and 200-day exponential moving averages as the sell-off pressure mounted.
Also read: ARK Innovation ETF (ARKK) down 50% YTD, but investors are not giving up.
Meanwhile, the whales might have caught the bearish drift, as analytical platform Ecoinometrics noted in the latest tweet.
Bitcoin whales withdraw?
The platform noted that “whales’ addresses are back at the bottom of the range,” providing research results to support the claim.
Crypto analyst with a Twitter handle CryptoCapo added sustenance to the sell-off fears and presented several large-scale BTC transactions that moved funds to the Coinbase exchange. Generally, a large inflow to the exchanges signifies traders’ preparedness to part with a particular asset. Thus, it rings bearish bells for Bitcoin.
Also read: Meta Platforms stock jumps 20% overnight — is FB a value trap?
Conversely, the holdings of whales possessing over ten thousand BTC were on the move, possibly pointing to their desire to ‘buy the dip.’
Additionally, Terra Foundation bolstered its stablecoin UST reserve by adding $1.5 billion worth of Bitcoin on Thursday. Do Kwon, co-founder, and CEO of Terraform Labs, the group that launched the Terra blockchain, said he expects to reach the $10-billion goal by the end of the third quarter.
Also read: Panama votes to legalize crypto: Bill sent to the president for approval.
Meanwhile, the flagship cryptocurrency faced a bearish short-term picture, with a possible drop back to $34,000 in the upcoming sessions.
