Bitcoin Whales Hesitate as Altcoins Capture Interest
From Bitcoin dips to MEMECOINs: Whale movements suggest a new market direction.
The traditional markets are going through a wave of uncertainty, which has led some experts to suggest a growing “love” of riskier investments, including a wide array of altcoins beyond Bitcoin. This drift comes from disappointment with legacy money systems, pushing individuals towards what some might consider akin to gambling with their investments.
Despite the fact that VanEck’s spot Bitcoin ETF is not among the top performers in the ETF race, the company has recently ventured into more volatile territories with the launch of its MarketVector MEMECOIN index.
This index mostly features meme-based cryptocurrencies, such as Dogecoin, which constitutes 30% of the index, followed by Shiba Inu at 28%, and others like PEPE, Dogwifhat, Floki, and Bonk making up smaller percentages. The introduction of such an index targeted at retail clients is seen by some as a bold or even reckless move.
Simultaneously, there’s been a noticeable change in the behavior of Bitcoin whales—large-scale investors known for their significant BTC holdings. Usually, these whales would buy most of the dips in Bitcoin price but recent analytics from IntoTheBlock indicate a decline in Bitcoin accumulation by whales.
Also, recent data shows a reduction in such activities, with each instance of accumulation being less pronounced than before.
This suggests a possible shift in their previously strong bullish stance on the market. It could mean that the “big boys” are not so confident that Bitcoin will make a new All Time High anytime soon and maybe they are getting ready for a bigger dip. This behavior could be a sign that a potential shift in market dynamics is coming. And the recent lower lows and lower highs shown by BTC/USD are not very reassuring, or at least not a sign of an uptrend.
Chart Analysis – BTC/USD
Bitcoin is currently changing hands at $62,770 according to CoinMarketCap data. It is still up 5.40% over the last 7 days and up almost 2% over the last 24 hours.
The bulls recently tried to take Bitcoin above the $63,600 threshold but the attempt failed and after a few daily candles with long wicks, BTC/USD descended below this resistance. The 50-day Moving Average also showed rejection, which is a sign that the Digital Gold may spend a longer period below this form of dynamic resistance.
It looks like the lower boundary of the descending channel is the next destination. There we will see if the whales consider Bitcoin worth buying. If they do, we will likely see a rally, which may or may not gain momentum, depending on how confident the other major market players are.
