While Bitcoin’s price has experienced a sharp drop this week, it doesn’t appear to be due to the actions of its whales and sharks.
According to data from CryptoQuant, addresses holding between 10 to 10k BTC have collectively accumulated $821.5M worth of BTC during the mid-sized crash. This suggests that Bitcoin whales and sharks aren’t to blame for the current drop in crypto prices, although they may be contributing to further accumulation.
BTC/USD recent price analysis
Bitcoin price is struggling to remain above the $20,000 level and is currently trading at $20,124.67.BTC fell below $20,000 amid further SVB Financial fallout. The price has been hovering around the $20,000 level for the past several days, and it seems that bulls haven’t been able to make a decisive move above the $20,200 resistance.
On the 4-hour chart, BTC is trading in an ascending channel pattern with strong support near the 20-EMA. If Bitcoin continues to hold above the $20,000 and 20-EMA support levels, it could create more bullish momentum and a possible retest of the resistance at $20,200.
On the downside, if the price falls below this level, then we might see further declines to the next key support at $19,800.
Today’s Bitcoin market analysis demonstrates that BTC is still struggling to remain over the $20,000 threshold. On March 10th, prices sharply plunged from an earlier peak of $21K all the way down to a measly $19,900 – its lowest rate since mid-January. This downward trend has been steadily intensifying for nearly one whole week as concerns about SVB contagion have grown in magnitude.
Bitcoin is trading at a low of $19,880.98 — down 5% from yesterday’s high of $20,879.30. The top-tier cryptocurrency has failed to remain to straddle the coveted $20K psychological level for days now and appears to have entered into a bear cycle with no end in sight just yet.
After SVB, the 16th largest commercial lender in America, underwent a huge restructuring effort, market sentiment shifted, and apprehension was widespread due to this event.
To garner a substantial $2.2 billion royalty, SVB Financial – the parent company of SVB – has declared it is liquidating its whole securities portfolio at an immense loss.
During session trading, SVB Financial’s share prices plummeted a shocking 60%, sending tremors of concern comparable to Silvergate bank’s historic collapse. These events have taken an immense toll on Bitcoin’s price as traders fear it may cause another wave of selling.
As the bearish market forces take over and push BTC below $20,000, the pressure mounts, and many are left wondering when this freefall will come to a stop.
Overall, it appears that while the mid-sized crash has put a damper on bitcoin’s outlook for the near future, whales and sharks are still accumulating large amounts of Bitcoin, which could precipitate a recovery at some point in time.
