June 21, 2024
1 Solar System Way, Planet Earth, USA
Crypto

New whales and long-term holders strengthen Bitcoin support at $60,000

Bitcoin price has been struggling to gain momentum after the halving. However, the world's leading cryptocurrency saw a significant recovery above $66,000 this week, bringing much-needed optimism after several uneventful weeks.

Current data indicates that the price of $60,000 has become a crucial support level on the chain, supported by new whale accumulation and the stability of long-term holders.

$60,000 solidifies as key support for Bitcoin

According to the latest recommendations From CryptoQuant, new whales, which are defined as addresses holding more than 1,000 BTC for less than 6 months, have been accumulating bitcoins around the $60,000 level. Thus, they positioned that line as an important on-chain support level, supported by the influx of institutional investors following the approval of Bitcoin spot ETFs in the US.

The average acquisition cost, or realized price, of these new whales is about $60,000. CryptoQuant said this shows its confidence in entering the market, as well as the strength of this price level as a floor for BTC. Additional institutional capital from spot ETFs has provided additional momentum, further validating $60,000 as a critical support zone.

Meanwhile, long-term whales, who have held over 1,000 BTC for over 6 months, showed a stable realized price. This stability often reflects these investors' experienced strategies and low turnover rates, indicating a long-term accumulation approach.

These holders could potentially demonstrate strong confidence in the long-term value of bitcoin, often ignoring short-term market fluctuations. Its stable realized price serves as a benchmark for market stability and long-term support.

“The interaction between realized prices of new and old whales presents a comprehensive view of market dynamics. The significant accumulation of new whales, driven by institutional investment and spot Bitcoin ETF approvals, reinforces the $60,000 support level.

Meanwhile, the long-term stability exhibited by whales provides a fundamental layer of trust and strategic holding patterns.”

Liquidity flood

Another factor validating the bullish narrative amid the market-wide recovery is the increase in the volume of stablecoins entering the market. Notable increases in stablecoin inflows have been found to coincide with bitcoin price fluctuations.

Such a trend points to increase liquidity in the market, which is crucial to sustain the current bullish trend.

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