Bitcoin
Data Shows “Smart Money” is Looking to Buy Bitcoin at $8,800
Cole Petersen | Sep 04, 2020 | 18:00
- It has been a rough past couple of days for Bitcoin and the rest of the crypto market, with bears forcing BTC to dive as low as $10,000
- The support found just below this price region was significant, as BTC quickly bounced and ran back towards the upper-$10,000 region
- Bulls and bears have since reached an impasse, with the cryptocurrency consolidating as it attempts to garner some clearer directionality in the near-term
- One analyst is pointing to data that shows whales are looking to add to their BTC positions within the $8,000 region
- This means that a dip to here may be imminent in the coming weeks and months
Bitcoin and the aggregated crypto market have been flashing some mixed signs in recent weeks.
Despite seeing intense strength throughout the past month or so, BTC erased most of its recent gains when sellers forced it down to lows of $9,990 before it was able to rebound back into the mid-$10,000 region.
This selling pressure came about rather unexpectedly and shows that the $12,000 region remains a massive macro resistance level for the crypto.
Where it trends next may somewhat depend on whether or not bulls can reclaim $11,000 – as this level was previously strong support for the benchmark crypto.
Data suggests that whales are waiting for it to see significantly lower lows before it ascends higher.
Bitcoin Shows Signs of Weakness Despite Present Stability
At the time of writing, Bitcoin is trading up just under 3% at its current price of $10,500. This is around the price at which it has been trading throughout the past 24-hours.
Following the intense selloff seen yesterday morning, BTC was able to find some stability around its current price region, and sellers have yet to retest its crucial $10,000 support level.
If buyers are unable to push it back above $11,000, however, there’s a high likelihood that lower lows are imminent.
“Smart Money” is Looking to Buy BTC at $8,800
One indicator that lower lows could be imminent for Bitcoin is the presence of heavy bids from whales in the upper-$8,000 region.
This indicates that they anticipate the crypto to dip towards these lows.
“Nice to see you again Bitfinex Whale. Smart money has their bids sitting at $8800. I expect the bottom will likely be around there,” one analyst explained while pointing to the below chart, highlighting the bids in the region.
Image Courtesy of Cole Garner.
The upcoming weekend will likely prove to be a pivotal time for Bitcoin.
Featured image from Unsplash. Charts and pricing data from TradingView.
