CryptoQuant Data Suggests that Whales Kept Buying Bitcoin Through Last Month’s Dip
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According to an on-chain data report from CryptoQuant, Bitcoin (BTC) whales took advantage of the April crash to stock up on BTC. Additionally, the report noted that the prospect for another upward price surge is still very likely, as traders struggle to break the $58k resistance.
Following an overwhelmingly bullish performance in the first half of April, the benchmark cryptocurrency saw a massive decline over the second half that saw BTC lose over $18,000. Although the cryptocurrency recovered most of its losses towards the end of the month, it failed to secure its seventh consecutive bullish monthly candle after closing 2% below the high in March.
However, the immense bearishness of Bitcoin last month did not deter whales from acquiring more coins. The CEO of CryptoQuant, Ki-young Ju, highlighted several metrics showing that large holders kept purchasing BTC over the past few weeks.
Ju gave special mention to the significant Coinbase premium—which typically occurs when institutions and corporations like Tesla and MicroStrategy buy Bitcoin through exchanges—and noted that it “could indicate institutional investors in the US are buying BTC.”
The executive also noted that wallets had migrated to derivatives exchanges, “meaning whales might open a long position by using their BTC as collateral.”
Key BTC Levels to Watch — May 2
Bitcoin posted a goodish bounce on Friday and broke into the $58 pivot zone. However, bulls failed to sustain the bullish climb, which triggered a sideways momentum between $58,000 and $57,500 ensued, followed by a dip below the $57k level.
That said, we expect the $56k psychological support to hold and push the price back into the $58k range over the coming hours and days as we inch closer to the upper-$60k region.
Meanwhile, our resistance levels are at $57,000, $58,000, and $59,000, and our key support levels are at $56,000, $55,000, and $54,000.
Total Market Capitalization: $2.19 trillion
Bitcoin Market Capitalization: $1.05 trillion
Bitcoin Dominance: 48%
Market Rank: #1
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