Bitcoin whale activity has risen to a four-month high as $BTC whales began purchasing the flagship cryptocurrency’s slump. As it approached important support at $20,000 and threatened to fall below it.
The greatest influx since February of this year was noticed this week. According to IntoTheBlock, which employs a statistic called Large Holders Inflow to track the funds pouring into addresses belonging to BTC whales. 116,000 bitcoins worth $2.5 billion moved in a single day.
According to IntoTheBlock, these addresses tend to buy in size following big market corrections, which could indicate a potential bottom in the cryptocurrency’s price. Bitcoin’s price has lately dropped as part of a broader market correction that has seen the crypto space’s global capitalization fall below $1 trillion.
According to CryptoCompare, the cryptocurrency tested the $20,000 level before settling at $21,000. It has dropped 2.4 percent in the last 24 hours to $20,600 at the time of writing. The $20,000 level is critical because it is a psychological support level near the peak of the 2017 bull market.
Using data from Glassnode, a crypto influencer on social media claimed 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 increased recently when prices fell.