Cryptocurrencies saw a sharp selloff on Friday as global markets retreated after US Federal Reserve officials indicated a resolve to keep raising interest rates until inflation is contained. The latest reversal in sentiment hit altcoins, which tend to be more volatile, especially hard as most recorded double-digit losses.
In relation to the short-term price action, large investors, or whales, seem to be scooping up coins at a discount amid the present market volatility. It should be noted that in every market cycle comes the accumulation phase, whereby prices flatten and contrarian investors see the opportunity to jump in and scoop up discounts.
Data from WhaleStats that tracks the top ETH and BSC wallets indicates that large investors have been loading up Ethereum (ETH), Cardano (ADA), Chainlink (LINK), Polygon (MATIC), Loopring (LRC), STEPN (GMT) and Gala (GALA), as these are among the top ten purchased by the biggest BSC and ETH whales over the last 24 hours. Expectations ahead of major updates for Ethereum and Cardano might have informed the recent whale buy-up.
According to cryptoanalyst Will Clemente, Bitcoin’s hash ribbons have flashed a buy signal for the first time since August 2021, marking the end of a more than two-month-long period of miner capitulation and deep pressure on the miner’s margins.
The analyst called out miners’ stress in June leading up to the market plunge in mid-June: “Miner margins have been getting compressed a bit lately with the following mix: hash rate up, difficulty up, and BTC price down.” The hash price is at its lowest since late 2020. starting to see some miners trim their BTC’’.
Speaking on the Hash Ribbon buy signal, Charles Edward, a cryptoanalyst, wrote: “The Bitcoin miner capitulation has officially ended today, making it the 3rd longest capitulation in history at 71 days. This capitulation zone was longer than 2021, and just two days shorter than 2018’s where the price touched $3.1K.’’
He added,’’ Historically, Bitcoin’s miner capitulations have captured major price lows and been great buy-signals. Miner capitulations that occur late cycle (at least 2 years after halving) and after cycle tops have been the most profitable long-term signals (eg. 2012, 2015, 2018)’’.
Veteran Trader Peter Brandt offers a mixed outlook on the Bitcoin price, stating, ”for all practical purposes, the target of the rising wedge in Bitcoin BTC has already been met.” That is not a reason per se to be bullish and it does not mean BTC cannot go lower yet’’
If the target has already been met as predicted by Brandt, then traders might be expectant of Bitcoin’s price, coupled with the Bitcoin hash ribbon signal. However, predicting price moves in the market remains speculative given the present macroeconomic uncertainty.
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