- Bitcoin’s price crashed by $1,700 within minutes after reaching a new yearly high of nearly $12,160
- Data reveals that as prices plummeted, large whales added more BTC to their positions
- If the buying spree by big investors continues, the pioneer cryptocurrency could bounce back and resume its historic bull trend
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After reaching new yearly highs, Bitcoin crashed and lost a critical level of support. Nevertheless, different metrics reveal that the uptrend has not been interrupted and that BTC prices will continue climbing.
Bitcoin Crashes While Whales Accumulate
The pioneer cryptocurrency made headlines after breaking out of a two-month-long consolidation period. Moving past the infamous $10,000 resistance barrier on July 27 triggered a state of FOMO among market participants. As the buying pressure behind BTC rose exponentially, its price shot up over 21.5% to hit a new yearly high of nearly $12,160.
A few minutes after reaching this milestone, however, Bitcoin suddenly crashed by roughly $1,700 to a low of $10,490. The bearish impulse caused the liquidation of more than $1.3 billion worth of BTC futures contracts as investors grew overwhelmingly greedy. Following the downswing that flushed out some weak hands, prices were able to partially recover and stabilize around the $11,100 mark.
Regardless of the erratic price action, big investors holding millions of dollars in Bitcoin, colloquially known as “whales” within the cryptocurrency industry, seem to have taken advantage of the move to accumulate more tokens. Santiment’s holder distribution chart recorded a spike in the number of addresses holding between 1,000 and 10,000 BTC as prices dropped. Roughly three new whales joined the network during the recent market crash.
The sudden spike in large investors may seem insignificant at first glance. Still, when considering that they hold between $11.3 million and $113…