During a difficult week, Bitcoin fell below $24,820, but small-scale investors saved the top cryptocurrency, aiding in its 8% recovery in just four days, according to Dalmas Ngetich of News BTC.
This resulted from the SEC’s (Securities and Exchange Commission of the United States) investigation of Binance and Coinbase. not to mention the 5%–5.25% interest rate increase by the Federal Reserve.
However, the cryptocurrency market has subsequently recovered as ordinary Bitcoin investors—those who own between 0.01 and 1 BTC—jumped in to buy the drop.
It’s interesting to note that retail investors’ buy-the-dip behavior is comparable to that seen following the Silicon Valley Bank collapse earlier this year but lower than that seen after the FTX collapse, which led the price of Bitcoin to fall below $16,000.
Retail investors are loading up, which may be a sign that institutional investors and holders are optimistic about the future despite recent poor fundamentals.
Moving Bitcoin Whales
The “whales” have also been moving in tandem with the rise in active retail purchases of Bitcoin.
A Twitter user also observed that a person who had been dormant since 2010 and had 50 BTC worth roughly $1.2 million recently shifted their coins.
The original mining of the batch of coins, which took place in June 2010, has not been completed.
Following the pattern, another Bitcoin wallet that had lain idle for ten years sent $7.8 million worth of BTC to a fresh wallet. After more than 11 years of inaction, another long-term holder transferred BTC worth $11 million.
Speculators question the motivations for such significant BTC swings at this pivotal time for the BTC price and the cryptocurrency market. These transfers can lead to trading activities that alter the supply and demand dynamics of Bitcoin, thereby having a short-term impact on prices.
On this Sunday, Bitcoin maintained a strong price above $26,000 and recovered from June 14 losses. Prices may recover in the following days, potentially exceeding $30,000, as retail investors appear to be buying the downturn.
At the start of trade on Monday, bitcoin was moving upward, trading at $26,511. The MACD’s slow line (red) and fast line (blue) are both below the zero level, and the 70-period moving average is above the most recent candles. The RSI is 49.
The $31,050 mark, which was last crossed on April 14th, serves as medium-term resistance.
