Bitcoin whale activity recently reached a 4-month high as $BTC whales began purchasing the flagship cryptocurrency’s dip as it approached the important support level of R321K and threatened to fall below it.
The greatest influx since February of this year was noticed this week, according to cryptocurrency analytics firm IntoTheBlock, which employs a metric called Large Holders Inflow to track funds flowing into addresses belonging to BTC whales, with 116,000 bitcoins worth R40 billion moving in a single day.
According to IntoTheBlock, the action could indicate a potential bottom in the cryptocurrency’s price because “these addresses tend to buy in size following significant market dips.” Bitcoin’s price has lately dropped as part of a broader market correction that has seen the crypto space’s global capitalization fall below R16 trillion.
According to CryptoCompare data, the cryptocurrency reached the R321K level before settling at R337K. It is currently trading at R330K, down 2.4 % in the previous 24 hours. The R321K level is critical because it represents a psychological support level towards the top of the 2017 bull run.
Using Glassnode data, a social media crypto influencer stated that whales “sell into strength and buy into weakness,” citing a graphic showing that the number of Bitcoin addresses with a balance of more than 10,000 BTC recently increased when prices fell. According to CryptoGlobe, Fidelity’s Director of Global Macro Jurrien Timmer recently stated that Bitcoin’s “P/E” metric, which uses the cryptocurrency’s price and network ratio, has returned to levels last seen in 2017 and 2013, despite the cryptocurrency’s price returning to late 2020 levels.
The extremely successful author of the “Rich Dad Poor Dad” series of personal financial books, Robert Kiyosaki, has highlighted Bitcoin’s crash as a chance for investors, stating that “crashes are the best times to get rich.”
Kiyosaki stated that the drop in Bitcoin is “great news,” as he is “waiting for Bitcoin to crash below R321K” so that he can “back up the truck” when the bottom is in.