What to know:
- Bitcoin whales added 19,610 BTC as small wallets reduced their holdings after July 29.
- Coldcard concerns followed reported losses of 1,360 BTC valued at nearly $87 million.
- Bitcoin could target $65,000 above $64,100, while a drop below $62,000 risks $57,820.
Bitcoin whales accumulated 19,610 BTC within several days as smaller holders reduced their balances following concerns about a reported Coldcard security flaw. The contrasting activity shows large wallets buying during a period of weaker confidence among retail investors.
Santiment said wallets holding between 10 and 10,000 BTC increased their holdings by 0.14% from July 29. Meanwhile, wallets holding less than 0.01 BTC cut their balances by 0.55%.
Why Are Bitcoin Whales Buying Retail Sales?
The change followed reports of a firmware entropy flaw affecting Coldcard wallets. Estimated losses linked to the incident have exceeded 1,360 BTC, worth about $87 million.
Also Read: Coldcard Attack Enters Fourth Wave as 448 Bitcoin Moves Across Wallets
The platform highlighted that the accumulation occurred across the broader group of wallets holding 10 to 10,000 BTC. The trend did not reflect one compromised address.
According to Santiment, the large players hoarded the coins that were being dumped as retail confidence eroded. Additionally, the security fears were widespread amongst those who were unaffected by the flaw being discussed.
Short-term holders caused additional pressure near the bottom of the trading range for Bitcoin. As noted on the CryptoQuant chart shared by the market analyst Whale Factor, 32,000 BTC were deposited on exchanges in a single day at a loss.
Whale Factor termed the move the largest short-term holder capitulation in 30 days. Not all deposits on the exchange can be assumed as the selling of all coins.
However, such transactions could be viewed as signs of defense positioning. This could indicate capitulation in case the market is testing support.
Glassnode recorded a reduction in market profitability. The percentage of the supply of Bitcoin kept in profit positions is heading towards a cyclical low as the market sees stop-loss moves.
Glassnode pointed out that the ratio between the supply kept by the short-term investors and the long-term ones is still close to its historical lows.
What Could Drive BTC Toward $65,000?
Daan Crypto Trades stated that Bitcoin has entered the top part of its trend line. The cryptocurrency also retraced back to its weekly 200-period moving average, where it has been trading irregularly.
According to the analysis, an even bigger advance will depend on a confirmed breakout from the falling wedge formation. Otherwise, a spike above the trend line will not be considered enough.
According to CoinGlass data, there are two significant clusters of leveraged positions near Bitcoin’s current price. The nearest cluster to the upside can be found within the area of $63,800-$64,100.
Bitcoin’s bounce to $63,900 put the price inside this liquidity range. An extension may trigger forced closes of leveraged shorts, which will fuel further gains.
There is more liquidity at $64,300. Then there are smaller clusters at $64,800 and $65,000. A clear breakdown above $64,100 will send the price towards those areas. Nevertheless, low spot demand may limit the strength of a short squeeze.
The most significant downside cluster is found between $61,900 and $62,200. It is located below the most recent low and may become an attraction point if the rally fails.
A breakdown above $64,100 will set the stage for $65,000. A drop below $62,000 will target the June-July low of $57,820.
Also Read: BNB Chain Targets Ex-Employee Over Alleged $628K Profit
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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