On-chain data shows that Bitcoin retail buyers have been loading up the recent dip, a move that also coincided with price gains above $26,000, relieving traders and holders. Early this week, BTC prices crashed to as low as $24,820 before recovering to spot rates, adding 8% in four days.
Retail Investors Are Buying The Dip
Following a turbulent week in the crypto space, which involved the United States Securities and Exchange Commission, Binance and “crypto” securities-related drama, the price of Bitcoin dipped below $25,000 after the Federal Reserve paused their rate hikes and keeping the US fund rate within the 5% and 5.25% zone, increasing the uncertainty within the market.
However, the crypto market has since rebounded, with retail bitcoin investors, characterized by those holding 0.01 to 1 BTC, stepping in to buy up the dip.
Interestingly, the dip-buying behavior exhibited by retail investors is similar in level to that observed during the Silicon Valley Bank (SVB) collapse earlier in the year, but less than that of the post FTX collapse crash which saw Bitcoin’s price tank below $16,000.
With retailers loading up, it could indicate that traders and holders are confident of what lies ahead despite recent unfavorable fundamentals.
Bitcoin Whales On The Move
Meanwhile, with active Bitcoin retail buyers ramping up, “whales” have also been on the move. Crypto whales are addresses holding large amount of coins.
A Twitter user also noted that a user with 50 BTC worth around $1.2 million recently moved his coins after being dormant since 2010.
The batch of coins was originally mined in June 2010 and had remained untouched since then before being moved.
Following the trend, another previously dormant Bitcoin wallet, that has been dormant for a decade, transferred $7.8 million worth of BTC to a new wallet. Another long-term holder moved $11 million worth of BTC after more than 11 years of inactivity.
At the pivotal moment of BTC’s price and the crypto space, speculators are raising questions about the motives behind such massive movements of BTC. It is known that the trading activities resulting from the transfers can impact the coin’s supply and demand dynamics of Bitcoin, potentially exerting short-term influence on prices.
As of writing on June 18, Bitcoin is firm above $26,500, and has reversed losses of June 14. With retailers appearing to be buying the dip, prices may recover in the days ahead, even rallying to $30,000.
Even so, Bitcoin remains under pressure and traders should watch how fundamental events, including the SEC lawsuits against Binance and Coinbase, would shape price action.
Featured Image from Canva, Chart from TradingView