Bitcoin Whale Buys Big as Price Struggles at 200 EMA, Bullish Signal or What?

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In the current bearish market sentiment, Bitcoin’s (BTC) price facing strong resistance from the 200 Exponential Moving Average (EMA) on a daily time frame. Amid this struggle, a whale wallet address “3G98jS” found this as a perfect opportunity and purchased over 322 BTC worth $19 million from Binance, as reported by an on-chain analytic firm Eyeonchain.

Whale’s Aggressive BTC Accumulation

With this recent purchase, the whale’s BTC holding increased to 8,881 coins worth $523 million. However, since the BTC price has been struggling to break this 200 EMA for the last six days, this whale has added over 2,322 BTC worth $136 million, during the same period. This shows that it is an ideal buying level for investors.

Whale on a Buying Spree: Adds 322.37 $BTC ($19M) to Holdings, Now Holds 8,881 BTC ($523M)

A whale has made yet another significant purchase, adding 322.37 BTC ($19M) to their holdings just 1 hour ago. This brings their total to 2,322.37 BTC ($136M) bought in the past 5 days. pic.twitter.com/IGpThbZlrv

— EyeOnChain (@EyeOnChain) September 3, 2024

In addition to the recent accumulation, whales and sharks have purchased over 133.3K BTC from retail investors who sold in a panic over the past few weeks, as reported by CoinPedia on August 29, 2024.

Bitcoin Technical Analysis and Key Levels

According to expert technical analysis, BTC is in a downtrend and currently experiencing strong resistance from the 200 EMA. Meanwhile, its Relative Strength Index (RSI) is in an oversold territory, indicating a potential trend reversal.

Based on the price action, if BTC breaks out of the current resistance level and closes a daily candle above $59,700, there is a high chance Bitcoin’s price could soar to the $61,500 level.

Bullish On-Chain Metrics Support Positive Outlook

As of now, the BTC’s on-chain metrics indicate a bullish signal. According to the on-chain analytic firm CryptoQuant, BTC’s exchange reserve metric signals a bullish outlook, currently at its lowest level in the last 30 days. This metric also suggests an ideal buying opportunity.

Additionally, another on-chain metric named BTC exchanges inflow, is also at its lowest level, indicating a potential buying signal.

At press time, BTC is trading near the $59,000 level and has experienced a price surge of over 1.25% in the last 24 hours. Meanwhile, its open interest has jumped by 1.15% during the same period, suggesting growing demands from investors amid price decline.

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