Cross-chain data shows that retail Bitcoin buyers loaded up on the recent decline, a move that also coincided with price gains above $26,000, which put traders and holders on edge. Early this week, bitcoin prices collapsed as low as $24,820 before recovering to the spot prices, adding 8% in four days.
Retail investors are buying the dip
After a turbulent week in the cryptocurrency space, which included the US Securities and Exchange Commission, the drama related to the securities “Binance” and “cryptocurrencies”, the price of bitcoin fell below $ 25,000 after the Federal Reserve temporarily halted its price increases and maintained the US funding rate. . Within the range of 5% and 5.25%, which increases the uncertainty within the market.
However, the crypto market has since reboundedwith retail bitcoin investors, who are characterized by those with 0.01 to 1 BTC, stepping in to buy the dip on the dip.
Interestingly, the buy-on-the-dip behavior exhibited by retail investors is similar in level to that observed during the Silicon Valley Bank (SVB) crash earlier in the year, but less so than the post-FTX crash that saw Bitcoin price drop below $16,000.
With retail traders loaded, it could indicate that traders and owners are confident of what lies ahead despite the recent unfavorable fundamentals.
Bitcoin whales are on their way
Meanwhile, with active retail buyers of Bitcoin on the rise, the “whales” were also on the move. Crypto whales are addresses that contain a large amount of coins.
The Twitter user also noticed that a user had 50 BTC worth around $1.2 million recently. he moved His coins after hibernation since 2010.
The set of coins was originally mined in June 2010 and has remained unchanged since before it was moved.
Following this trend, another previously dormant Bitcoin wallet, which had been dormant for a decade, transferred $7.8 million in BTC to a new wallet. Another long-term holder has transferred $11 million worth of BTC after more than 11 years of inactivity.
At a pivotal moment for the BTC price and the cryptocurrency space, speculators are raising questions about the motives behind such massive moves for BTC. It is known that the trading activities generated by the transfers can affect the supply and demand dynamics of Bitcoin, which may affect the prices in the short term.
As of writing on June 18th, Bitcoin was steady above $26,500, and reversed its losses on June 14th. And with retailers appearing to buy the dip, the price may recover in the coming days, even as high as $30,000.
However, Bitcoin remains under pressure and traders should watch how fundamental events, including the SEC lawsuits against Binance and Coinbase, will shape price action.
Featured image from Canva, chart from TradingView
