- Whales scooped up $5.5B in Bitcoin as its price dropped below $36,000.
- Looking at the volume data, whales definitely made sure to buy at the dip.
- BTC drops as Chinese government announces a crackdown on Bitcoin.
Based on derivatives data, whales scooped up $5.5B in Bitcoin as its price went down below $36,000. Whales, who can influence in either direction when they make large buys or sell orders, aggressively bought the dip definitely. However, this fall doesn’t mean BTC has bottomed yet.
Meanwhile, negative news concerning Bitcoin and the entire crypto industry has been non-stop over the past few weeks. Alongside today’s FUD (fear, uncertainty, and doubt), Chinese government announces a ‘crackdown on Bitcoin mining and trading behavior’.
Subsequently, retail traders are easily scared to this kind of news. However, whales clearly know how to spot a buying opportunity, which is the case for today’s drop to $36,000.
Moreover, trading volume is the best indicator when confirming a whale activity, and those peaks need to coincide with the price bottoms. Based on this Volume chart by Coinalyze via Tradingview, whales have bought the dip starting the 20th of May to 21st.
Looking at the above data, there is no doubt the whales and market makers aggressively bought the $36,000 recently. In addition, spot exchange volumes surpassed $5.6 billion in four hours, which is extreme even for a 12% price movement.
It should be noted, the daily average volume over the past months stands at $11 billion. Hence, this data shows some heavy players are brave enough to buy at today’s dip. Although no one can accurately forecast whether $35,000 will hold over the weekend, anyone can expect those market makers to maintain their position for a long time.