Inflows into largest Bitcoin wallets rise after price fall
Data from the crypto intelligence firm IntoTheBlock reveals that in the wake of the recent crypto market downturn, Bitcoin’s most significant holders have seen an unparalleled net influx.
On Monday, heavy hitters owning at least 0.1% of Bitcoin's total circulating supply amassed an astonishing $436 million in Bitcoin.
These financial giants likely heeded the timeless strategy advocated by investment mogul Warren Buffett to capitalize on moments of market despair.
On June 24, amidst negative update concerning the bankruptcy resolution of the erstwhile digital currency exchange Mt. Gox set for July, Bitcoin's value plummeted to a low of $58,456.
At the same time, the crypto market has been engulfed by a cloud of pessimism, with the widely monitored Fear & Greed Index registering its most cautious sentiment since the previous September.
Moreover, the Relative Strength Index (RSI), a key indicator for market momentum, indicates that Bitcoin is currently experiencing significant undervaluation on both the daily and weekly scales. This level of overselling hasn't been observed since Bitcoin's valuation was merely $26,000.
The combination of these elements points towards a potential upward correction in Bitcoin prices, with several major investors presumably seizing the opportunity to augment their holdings amidst recent price declines.
This Tuesday witnessed a Bitcoin recovery as prices climbed back to $62,004, marking an increase of over 2.2%.
Cryptocurrency analyst Rekt Capital notes that Bitcoin has admirably maintained the crucial support level at $60,600, which represents the lower boundary of the current trading range. The analyst posits that should Bitcoin maintain this stability, it could retest the higher end of its trading bracket.
Market expert James Stanley also pinpointed the $60,000 mark as a critical support threshold that Bitcoin's proponents have successfully defended.
