Whale Txs Rises 3-Month High Ahead US CPI Data
Bitcoin News: After slipping to a low of $21.5K, Bitcoin price is again witnessing a huge buying opportunity ahead of the U.S. Consumer Price Index (CPI) data on Tuesday. Bitcoin and altcoins prices tumbled after the news of the U.S. SEC’s crackdown against crypto staking offered by crypto firms in the US.
Experts warn of an upcoming Operation Choke Point 2.0 regulatory action coordinated by multiple U.S. government agencies to cut ties between the crypto industry and banks. The SEC issued a Wells Notice against Paxos claiming its Binance USD (BUSD) is an unregistered security. Paxos is also under probe by the New York State Department of Financial Services.
Also Read: Paxos Ordered To Stop Creating Binance’s BUSD, Crypto Market Crash Imminent?
Bitcoin News: Whales Buying the Bitcoin Price Dip
According to the on-chain platform Santiment, Bitcoin Whale Transactions Count data indicates that whale transactions with over 1 million USD have hit a 3-month high. It suggests that whales are showing interest as the Bitcoin price fell to $21.5K.
Moreover, the MVRV Ratio has declined significantly, indicating a buy-the-dip opportunity for whales.
Bitcoin price trend also completed a “golden cross” pattern as 50-MA (red) crossed over 200-MA (blue) in the daily timeframe on February 7. While the “golden cross” is a bullish pattern that can extend Bitcoin’s 40% rally in January, the current market conditions restrict an upside move.
Moreover, crypto analyst Michael van de Poppe earlier predicted that Bitcoin price is still in a corrective trend and can hit the $21K support level. It is actually the entry zone that investors should be looking at. Whales are likely looking for a buy-the-dip opportunity at the current level.
After a “buy the dip”, Bitcoin price can rally to $25K. It is actually a great period to start looking into longs due to the dip season. Interestingly, the U.S. CPI data for January coming on Tuesday is the event after which a massive rally can be seen because the inflation will probably drop like a stone.
Also Read: Breaking: Binance CEO “CZ” Breaks Silence On US SEC’s Crackdown On BUSD
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.