13,010 BTC gained while Bitcoin fell to $40,555 ⋆ ZyCrypto

During the recent market downturn, Bitcoin (BTC) saw significant declines, plummeting from its recent high of $44,700 recorded on December 8 to $40,555. However, amid this decline, on-chain data showed notable movement from institutional investors who took advantage. The price drop netted them a significant 13,010 BTC, worth about $533 million.

The decline in the value of Bitcoin on Wednesday, following lower inflation figures in the US CPI report for November, sparked a reaction across markets. Despite these setbacks, large institutional investors, often referred to as “whales,” have shown considerable confidence in cryptocurrencies.

Insights from IntoTheBlock show a notable increase in BTC net flows among major holders during this week’s recession. This trend represents a strategic move by these major companies, who began accumulating Bitcoin as the price began to fall earlier this week.

Acquiring 13,010 BTC amid falling prices, worth an average of $41,000, represents a significant investment worth $533 million in just three days. These bullish moves by institutional investors have historically influenced cryptocurrency prices in several ways.

When large entities, primarily whales, purchase significant amounts of BTC quickly, they often absorb excess supply in the market. This buying activity also injects much-needed liquidity, allowing sellers to execute trades more favorably.

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Additionally, large investments from influential investors often create positive momentum within the cryptocurrency ecosystem. This collective buying pressure tends to shift market sentiment towards optimism and could pave the way for an ultimate upward trend in the Bitcoin price.

Prediction: Bullish Momentum and Potential Hurdles

Predictions are leaning towards Bitcoin regaining the $45,000 level in the near term. Insights show that corporate investors are actively accumulating BTC in anticipation of the imminent approval of a Bitcoin spot exchange-traded fund (ETF). Unless there are major hurdles that impede the ETF approval process, the momentum is poised to remain in favor of the bulls.

However, Bitcoin may face notable resistance near $43,500 on its upward trajectory, according to analysts and on-chain data. The data also highlights potential support and resistance areas based on the average entry price for current BTC holders.

The situation remains fluid for the bears to exert influence if Bitcoin falls below the psychological support level of $40,000. Nonetheless, the expectation of spot ETF approval in the coming months could help steer the direction of the market and defend critical support levels.