Bitcoin continued to slide heading into the weekend, slipping as low as $39,174 (PrimeXBT) on Friday before witnessing a modest recovery. The Bitcoin-led sell off resulted in a -2.1% change in the crypto market cap which stands at $1.95 trillion at the time of writing. However, the selling pressure has not shaken whale resolve to pick up more BTC on sale.
Large Addresses Buy Bitcoin
Confident buyers continue to acquire Bitcoin despite the price correction. On-chain data analytics firm Santiment reported this week that whale wallets were buying during the price-drop below $40,000.
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Per the data above, the analytics platform noted:
“Bitcoin whale addresses holding 100 to 10k $BTC have collectively accumulated 18,104 more $BTC since the April 10th price drop below $40k. However, their holdings are still down substantially since October. Meanwhile, USDT buying power looks promising.”
Despite the volatility and downward pressure, a cohort a buyers have consistently appeared at key levels. Meanwhile, exchange reserves reached their lowest point in four years, per data from on-chain analytics platform Crypto Quant.
$BTC Spot Exchanges’ Reserve hits over a 4-year low
Live Chart👇https://t.co/52cmYEeYFo pic.twitter.com/BqB7koB5i0
— CryptoQuant.com (@cryptoquant_com) April 21, 2022
As the Bitcoin price ranges, large quantities of the asset moved off exchanges. The persistent removal of Bitcoin off exchanges tends to indicate ‘accumulating behaviour’. However, the trend might also be accelerating partly due potentially disastrous privacy-infringing policy that might pass into law in Europe.
Meanwhile, retail interest in Bitcoin has tapered off, with Google queries for the crypto reaching their lowest level in two years. Typically, large investors and determined users tend to purchase under such conditions in preparation for an eventual change in trend.
When the crypto tourists leave, the only people left tend to be hardened and committed veterans. Under such conditions, selling is similar to trying to draw blood from a stone.
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