Bitcoin Drops to $61,000 as Whales Seize the Opportunity to Accumulate

Bitcoin is currently trading at $61,000, despite ongoing accumulation by whale investors. These large-scale Bitcoin investors, commonly referred to as whales, have been discreetly amassing the leading cryptocurrency as its price shows signs of recovering from a recent dip that saw it drop just above the $58,000 mark.

Data from blockchain analytics firm IntoTheBlock reveals that holders controlling at least 0.1% of the total Bitcoin supply added 7,130 BTC, worth approximately $436 million, to their wallets in a single day amid the price decline.

This buying activity is captured in the “Large Holder Netflows” metric, which tracks the net movement of Bitcoin into and out of wallets associated with these significant investors. According to IntoTheBlock, large Bitcoin holders—defined as those possessing at least 0.1% of the cryptocurrency’s supply—hold a minimum of 19,700 BTC, equivalent to around $1.2 billion.

Despite market FUD, the net inflow to Bitcoin’s largest wallets reached its highest level since late May.

Holders controlling at least 0.1% of the total BTC supply added 7,130 #BTC, valued at approximately $436 million, to their wallets yesterday alone. pic.twitter.com/elMilAgK58

— IntoTheBlock (@intotheblock) June 25, 2024

This recent purchasing spree represents the strongest net capital inflow from large holders since late May. It suggests that BTC whales view the current price as low and see it as an attractive opportunity to increase their Bitcoin holdings, likely disregarding broader market fears.

The recent price drop in cryptocurrencies has revealed a technical indicator suggesting that Bitcoin has entered oversold territory. According to renowned analyst Ali Martinez, the Relative Strength Index (RSI)—a technical indicator that charts the current and historical strength or weakness of an asset’s recent price changes—has fallen into the “oversold” zone for Bitcoin. Martinez notes that the last three times it reached this level, BTC’s price surged.

Martinez reports that Bitcoin entered the oversold zone after dropping below $62,000, but continued its decline to trade above $58,000 before rebounding to its current price of $61,100.

Interestingly, previous instances of the RSI reaching oversold levels have been followed by significant Bitcoin price increases. In August 2023, a similar RSI signal led to a remarkable 197% rise, while in November 2022 and March 2023, the oversold conditions were followed by gains of 60% and 62%, respectively.