Binance Bought A Whooping 41,000 BTC During The Dip: Did They Save The Bitcoin Market?

As a seasoned crypto investor with a few years under my belt, I’ve seen my fair share of market volatility and price swings. And right now, the technical outlook for Bitcoin is showing some weakness, despite the recent recovery from last week’s sell-off. The candlestick arrangement in the daily chart points to a potential continuation of this sideways trend until we break above $60,000 and the liquidation level at around $66,000.

At present, Bitcoin‘s price action remains horizontal, as it takes in the recent surge of sell-offs experienced during the past week. Despite a few bullish outlooks, the layout of the candles on the daily chart suggests vulnerability.

From a technical perspective, this outlook persists as long as Bitcoin’s price stays below the $60,000 mark and its liquidation level hovers around $66,000.

Binance Bought The Bitcoin Dip

During the market’s rebound, one analyst drew attention to intriguing on-chain information. They noted that certain unidentified exchanges had been buying the dip when prices declined the previous week. It is now becoming clear that Binance, the leading exchange in terms of user base, was among those actively amassing assets.

Binance Bought A Whooping 41,000 BTC During The Dip: Did They Save The Bitcoin Market?

As a researcher studying cryptocurrency market trends, I’ve observed that Binance added approximately 41,000 Bitcoin to its reserves during the recent bear run when prices dropped from $72,000. By buying during price corrections, exchanges like Binance can strategically position themselves to meet user demands for converting other tokens into Bitcoin quickly and efficiently.

As a crypto investor, I’ve observed that permanent holders, those who typically hold onto their coins for extended periods, have been actively accumulating more Bitcoins recently. Specifically, excluding Bitcoin ETF issuers, exchanges such as Binance and Coinbase, as well as miners, these entities added approximately 85,000 BTC to their holdings in the past month. On the other hand, spot Bitcoin ETF issuers reduced their holding by around 16,000 BTC during this period.

Binance Bought A Whooping 41,000 BTC During The Dip: Did They Save The Bitcoin Market?

Some entities rushed to sell their holdings during the recent market turmoil, while others took advantage of the situation by increasing their investments. Their actions have contributed to price stabilization and boosted sentiment, which had been negatively affected by last week’s sharp decline that pushed the price down to as low as $53,500.

German Government Offloading More BTC

As an analyst, I’m constantly monitoring the cryptocurrency market, and today, I noticed that even as some investors, referred to as “diamond hands,” are buying the dip, the German government is continuing its actions. According to Arkham Intelligence data, on July 11, they transferred an additional 3,250 Bitcoin, following the 5,627 Bitcoin sent earlier, to various market makers and exchanges, including Bitstamp.

Binance Bought A Whooping 41,000 BTC During The Dip: Did They Save The Bitcoin Market?

The choice to offload their holdings is adding extra stress to the cryptocurrency, potentially hindering its upward trajectory. Despite continuous withdrawals from the German authorities, a recent Coingecko poll indicates that the majority of participants, particularly investors, remain optimistic.

As a researcher studying the current market sentiment among traders and speculators, I’ve discovered an intriguing split in opinions. Approximately forty percent are optimistic, believing prices will bounce back. On the other hand, a similar number, thirty-three and a half percent, hold pessimistic views, anticipating further declines. Interestingly, a larger proportion, forty-two point four percent, among speculators remain bearish, expecting prices to keep falling.

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2024-07-11 20:11