As the price of Bitcoin hovered below $50,000 in recent weeks. Whales saw it as an opportunity to “buy the dip.”
According to on-chain analytics service Material Indicators. Bitcoin buy orders of $100,000 or more are reaching all-time highs.
Meanwhile, smaller orders have dropped since the start of 2021. This fits the narrative that institutional interest in Bitcoin has never been higher.
“The $100k – $1M class is now also about to make a new ATH,” Material Indicators said in a tweet.
However, the analytics firm expressed concern over Bitcoin’s latest rally, arguing that whales could “sell into” the surge. And produce a repeat of the subsequent 25% correction that followed the record high price of $58,000.
Analysts also noted that macroeconomic factors are having a much different impact on Bitcoin’s value than expected.
Whale orders briefly declined after the United States Senate passed the $1.9 trillion stimulus bill. That will put payments of $1,400 in the hands of millions of Americans.
In contrast, China providing support to tech stocks had the opposite effect on Bitcoin’s price.
Latest Bitcoin rally followed major Coinbase buy
Bitcoin’s current rally came on the heels of nearly 12,000 BTC leaving trading platform Coinbase Pro. “That happened just before the recent surge in price. Nice coincidence,” quant analyst Lex Moskovski said after reviewing data from fellow on-chain analytics resource Glass node.
At press time, Bitcoin was trading at just over $56,000. Many believe the increasing institutional involvement around the leading cryptocurrency isn’t just temporary.
“We do think it will behave, actually. I would say more like the fixed income markets, believe it or not.” Cathie Wood, founder and CEO of ARK Investment Management said last week.
The next major resistance levels to watch for the bulls are around Bitcoin’s all-time high of $58,000 and $59,500. BTC could easily test those now that a third stimulus package is on the way.