Significant Bitcoin Purchase Amidst Binance Sell-Off Leading to Sub-$58K Low

Recent market movements have seen Bitcoin whales seizing opportunities to acquire BTC at lower prices as volatility continues to affect trading dynamics.

Market Dynamics Following Selling Pressure

On August 29, Bitcoin (BTC) attempted to reclaim the $60,000 mark after experiencing a period of selling.

Notable Selling Activity on Binance

Data sourced from Cointelegraph Markets Pro and TradingView indicates that BTC hit a two-week low of $57,900 on Bitstamp, before recovering slightly. Market participants highlighted that the drop was primarily driven by significant selling on Binance, the largest global exchange.

The exchange’s trading volume was particularly affected by a controversy regarding user funds in Palestine, which contributed to a pronounced sell-off during U.S. trading hours. Data from CoinGlass reported a sudden drop of 45,000 BTC from Binance’s balance.

Market analyst Michaël van de Poppe suggested a potential decline to $56,000, noting that the inability to hold above $61,000 was a critical development.

Large Investors Buying the Dip

Despite the selling pressure, large-volume investors displayed confidence, with analytics platform Lookonchain reporting a significant purchase of nearly $60 million worth of BTC.

According to research from Santiment, acquisition strategies for whale and shark accounts appeared favorable around the $59,000 mark, with these holdings reportedly increasing by 133.3K coins over the past month.

Assessing Long-term Support Levels

Popular trader and analyst Rekt Capital noted that BTC/USD is maintaining a bullish structure within a narrowing pattern, indicating potential for a price breakout.

“Bitcoin has maintained a Higher Low and has remained above the key $55,737 weekly level,” Rekt Capital stated, embodying a cautious optimism amid the current trend. He added, “Bitcoin has formed strong support around $58,000, which is being tested presently.”

“This confluent support is being retested as we speak.”

This content is for informational purposes only and does not constitute investment advice. Every trading decision carries risk and individuals are encouraged to undertake their own research.