Bitcoin Whales Take Advantage of Dip Ahead of US CPI Data
Bitcoin prices are on the rise again after a recent dip to $21.5K. The cryptocurrency is witnessing a huge buying opportunity ahead of the release of the U.S. Consumer Price Index (CPI) data on Tuesday. The Bitcoin market experienced a significant drop in prices after news broke of the U.S. SEC’s crackdown on crypto staking offered by crypto firms in the US.
#Bitcoin News: Whale Txs Rises 3-Month High Ahead US CPI Inflation Data, What’s Next? 🐳https://t.co/mSbv7p9t5m#BTC $BTC #Crypto #CryptoNews
— CoinGape News (@CoinGapeMedia) February 13, 2023
Bullish Future for Bitcoin
However, the on-chain platform Santiment has reported that Bitcoin Whale Transactions Count data has reached a 3-month high, indicating that whales are showing interest as the Bitcoin price fell to $21.5K. The MVRV Ratio has also declined significantly, suggesting a buy-the-dip opportunity for whales.
Additionally, Bitcoin’s price trend recently completed a “golden cross” pattern as the 50-MA (red) crossed over the 200-MA (blue) in the daily timeframe on February 7. This is a bullish pattern that can extend Bitcoin’s 40% rally in January. However, the current market conditions are restricting an upside move.
Bitcoin in Correction Phase
Crypto analyst Michael van de Poppe has predicted that Bitcoin’s price is still in a corrective trend and can hit the $21K support level, which is actually the entry zone that investors should be looking at. He believes that after a “buy the dip”, Bitcoin’s price can rally to $25K, making it a great period for investors to start looking into longs.
The upcoming U.S. CPI data for January, which is set to be released on Tuesday, is also being touted as a potential catalyst for a massive rally. Analysts expect that the inflation will drop significantly, leading to a surge in the Bitcoin market.
Market Potential Undeterred
Despite the recent regulatory action by the SEC and the possibility of an upcoming Operation Choke Point 2.0 coordinated by multiple U.S. government agencies to cut ties between the crypto industry and banks, the market is showing signs of growth and potential. Investors are advised to keep a close eye on the market and take advantage of the current buying opportunity.
