Once again, we see a dominance of red in the cryptocurrency market. Bitcoin (BTC) fell sharply to $ 46,000 today after a strong global market correction in a risk asset sale.
Within a week, the price of Bitcoin fell more than 20% from its all-time high of $ 58,300.
However, on-chain activity shows that the big players are taking advantage of the price drop. Big giants like Purpose Bitcoin ETF, Sqaure Inc, and Microstrategy received large amounts of BTC during Tuesday’s BTC price correction.
The latest on-chain data from Grayscale shows that the illiquid supply in the Bitcoin network exceeds its circulating supply. This means that Bitcoin liquidity continues to see a sharp decline over time, indicating future bullish signals for BTC.
Ki-Young Ju, another popular market analyst and CEO of CryptoQuant, reported that there were big BTC purchases at $ 44,000 by major players at Coinbase. Yesterday, Coinbase recorded a net outflow of about 13,000 BTC, suggesting strong corporate purchases at around $ 48,000.
Ki-Young Ju believes that the big players will strongly defend their $ 44,000 levels and there will be a strong backlog in the $ 44,000 to $ 48,000 range. Therefore, another BTC price correction in the 10-15% range from current levels seems unlikely at this time.
Another data from Santiment shows that Bitcoin whale addresses holding 1000 and above BTC are dropping as they decide to book big profits. However, these addresses saw an increase suggesting a mid-$ 40,000 backlog.
In another major development, asset management giant Stone Ridge applied to the US SEC to become the first open-ended investment fund to buy Bitcoin (BTC).
Therefore, we can say that despite the recent price correction, big players continue to accumulate Bitcoins. On the other hand, historical chart patterns show that March has been bearish pressure on BTC over the past four years. Considering that Bitcoin rose very strongly in 2021 and last year, we can expect some pressure or consolidation next month.