Bitcoin News Roundup: BTC falls below $30,000 Again – Whales Accumulate
- Analysis
- May 16, 2022
While Bitcoin fell below the $ 30,000 mark, large players in the market accumulated BTC. In addition, a Bitcoin conference is scheduled to take place in El Salvador on May 17, 2022. The country introduced BTC at the end of 2021 as the first country in the world to introduce legal tender.
The president of El Salvador and BTC proponent Nayib Bukele announced on Twitter that an international Bitcoin conference will be held on May 17, 2022. Central banks and financial institutions from 44 countries will take part in it. The participants are from Africa, Asia and South America, but there are no participants from the first world. Topics include financial inclusion, the benefits of Bitcoin in El Salvador.
Even if the adaptation of cryptocurrencies can continue to progress after the conference, many are critical of the current development. For example, the founder and CEO of the crypto exchange FTX, Sam Bankman-Fried, was critical of the proof-of-work consensus mechanism used by BTC, which requires significantly more energy compared to the proof-of-stake mechanism and is therefore comparatively more environmentally harmful. In his opinion, Bitcoin will not prevail as a payment network either.
“The Bitcoin network is not a payment network and not a scaling network.”
Nevertheless, he believes that BTC will persist. For him, Bitcoin will play a role similar to gold and will serve as a store of wealth.
BTC price: selling pressure grows – whales accumulate
The weekly trend tends to be bearish, according to the technical analysis of our crypto trader Valdrin Tahiri. The Bitcoin price has again fallen below the important $ 30,000 mark after the BTC price bounced off the 0.618 Fib retracement at $26,700 on May 12, 2022.
The RSI, a momentum indicator, has already fallen below the 50 line in April. This is an indicator of a trend change. In addition, the BTC price has broken out under an ascending parallel channel. The price trend does not look bullish either. If the current downward movement continues, the BTC price will hit support at $ 26,700 and $ 17,800 (the 0.786 Fib retracement level).
Despite the current sell-off, it seems that the whales have already started buying Bitcoin. The CEO of the crypto analysis company Cryptoquant shared a thread on Twitter in which he analyzed the buying behavior of major market participants: institutional investors are accumulating more BTC again.
In his opinion, the sell-off will continue, while the major investors will continue to buy BTC. He did not name a price level to which Bitcoin could fall. However, the analyst published a BTC chart.
On the crypto exchange Coinbase, the whales probably already made some purchase requests or placed them. Institutional investors also bought up some BTC from the Luna Guard Foundation (LFG) after the cryptocurrencies LUNA and UST crashed last week.
In the summer of 2021, the Whales accumulated large amounts of BTC. However, the purchase orders of the major investors are currently below the then macro low point. Further sales could well follow.
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