Key Insights: Bitcoin (BTC) Price Drops to 2023 Low of $88K, Whale Accumulation Signals Institutional Interest

Bitcoin experienced a sharp decline at the start of the week, falling from around $96,500 over the weekend to $94,000

Key Insights:

* Bitcoin experienced a sharp decline at the start of the week, falling from around $96,500 over the weekend to $94,000 on Monday despite a recent multi-billion dollar purchase by a major investment firm.

* The downward trend continued into Tuesday morning when Bitcoin’s price plummeted to just under $88,000 on Bitstamp, marking its lowest level since November 15. The asset struggled to reclaim the $88,000 mark after a brief rejection at $90,000. During the latest trading session, Bitcoin stood at $88,594.89, reflecting a 0.54% decline in the past 24 hours and a 7.29% decrease over the past seven days.

* A chart presenting the accumulation addresses of whales showed a buildup amid the sustained decline in Bitcoin price. The alert used by CryptoQuant goes off when whales pump more than 20,000 BTC.

* According to the data, the latest inflow value for BTC / USD was 26,430.311 BTC, which crossed the above threshold. These transactions, often linked to over-the-counter (OTC) deals or long-term custody moves, suggest institutional investors are accumulating Bitcoin.

* Typically, large inflows by whales are signs of long term faith in holding Bitcoin, which helps to reduce Bitcoin’s circulating supply. In the past, whales tend to buy Bitcoin during corrections and consolidation, thus adding to the momentum of a potential bull run.

* Moreover, OTC transactions indicate institutional accumulation without immediately affecting spot market prices, a common trait preceding widespread market change.

Technical Analysis:

* An analysis by Gert van Lagen presented a Bitcoin weekly time frame chart that included Elliott Wave Theory, parabolic curve trends, and crucial support and resistance levels. The chart displayed a five-wave impulse sequence, placing Bitcoin in Wave 5.

$BTC [1W] – Wave ii was sharp, so by the principle of alternation, wave iv is expected to be flat. It now qualifies as an expanded flat after dropping below $89k (A). Price action is oscillating between the trendline formed by weekly closes (dashed) and weekly highs (solid). pic.itemize