Bitcoin retests key $30K support zone as data highlights BTC whale accumulation

Bitcoin

Bitcoin retests key $30K support zone as data highlights BTC whale accumulation

Fear dominates the crypto market as BTC price trades near $30,000, but data suggests whales and momentum traders could be interested in accumulating in this zone.

Bitcoin retests key $30K support zone as data highlights BTC whale accumulation

Sentiment across the cryptocurrency market plunged even deeper on May 9 as an escalation in the ongoing sell-off intensified, with bears pushing Bitcoin (BTC) to $30,334, its lowest price since July 2021. 

Bitcoin retests key $30K support zone as data highlights BTC whale accumulation

Crypto Fear & Greed Index. Source: Alternative.me

Multiple factors like rising interest rates, the end of easy money policies by the Federal Reserve, declining stock prices and concerns related to TerraUSD (UST) stablecoin maintaining its $1 peg are all impacting sentiment within the crypto market.

Data from Cointelegraph Markets Pro and TradingView shows that an afternoon of heavy selling on May 9 hammered the price of BTC to a daily low of $30,334 as bulls frantically regrouped to defend the psychologically important $30,000 price level.

Bitcoin retests key $30K support zone as data highlights BTC whale accumulation

BTC/USDT 1-day chart. Source: TradingView

Here’s a look at what several analysts are saying about the outlook for Bitcoin moving forward, along with some insight into how BTC whales are reacting to the recent price action.

Has a bear market started?

The possibility of a strong sell-off was discussed prior to Monday’s move by analyst and pseudonymous Twitter user Nunya Bizniz, who posted the following chart highlighting a possible zone of capitulation for Bitcoin.

Bitcoin retests key $30K support zone as data highlights BTC whale accumulation

BTC/USD 1-week chart. Source: Twitter

Nunya Bizniz said:

Bitcoin price is trading below its 2-year moving average

A more positive take on the recent weakness was offered by crypto analyst Philip Swift, who posted the following chart looking at the BTC price relative to its 2-year moving average (MA).

Bitcoin retests key $30K support zone as data highlights BTC whale accumulation

Bitcoin 2-year MA multiplier. Source: Twitter

The analyst said:

“It’s that time in the cycle again! Price has dropped below the 2yr MA. Accumulate.”

Whales wallets have been feasting

According to Twitter crypto analyst Akash, Bitcoin whales have been accumulating through the previous downturns and sideways price action. 

BTC price vs. wallets holding 10,000 to 100,000 BTC. Source: Twitter

Akash said:

“Wallets holding 10,000 to 100,000 BTC have been on a buying spree since April 30.”

While this data is encouraging on some levels, it’s important to remember that there are no guarantees against another trend change or further downside, and traders would be wise to assume nothing and take extra care to manage their risk moving forward.

The overall cryptocurrency market cap now stands at $1.411 trillion, and Bitcoin’s dominance rate is 41.5%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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