This coincided with a crucial support level that Bitcoin needs to rebound from before facing further declines. Popular cryptocurrency analyst Ali Martinez revealed that miner reserves decreased by over 2,000 BTC during this time, indicating significant selling pressure from miners.
The cryptocurrency market witnessed Bitcoin's price dropping from around $29,000 to a low above $26,500, but it is currently showing signs of recovery. As of now, BTC is trading at $26,800 after bouncing back from a key support level of $26,490. Notably, blockchain data reveals that over 845,000 addresses hold a volume of more than 474,000 BTC at this support level.
If Bitcoin were to break below this critical level, Martinez suggests that a correction down to $24,100 or even $23,190 could be triggered, based on blockchain data from IntoTheBlock. On the upside, BTC faces strong resistance between the $28,180 and $28,990 levels, where 1.24 million addresses have accumulated 973,220 BTC.
Recent blockchain data also indicates a surge in acquisitions by cryptocurrency whales, who are entities holding between 1,000 and 10,000 BTC. These deep-pocketed players have amassed an additional $2.32 billion worth of Bitcoin in just over a month. Similar whale accumulation earlier this year preceded a 34% increase in the cryptocurrency's price. The accumulation of tokens by whales not only signals confidence in the market but also helps reduce the supply available on exchanges, potentially driving up prices.
Bitcoin adoption continues to rise, with the total number of unique addresses holding at least one BTC reaching a new record above one million. On May 12, the number of "whole-coiner" addresses (those holding one whole BTC) surpassed 1,000,527, indicating a growing interest in Bitcoin and ongoing accumulation. This milestone follows the crossing of the 800,000 mark on February 2.
Overall, the recent Bitcoin miner sell-off, coupled with whale accumulation and increasing adoption, underscores the dynamic nature of the cryptocurrency market. Investors are closely monitoring key support and resistance levels, recognizing their potential impact on Bitcoin's price trajectory.
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