Bitcoin (BTC) prices crashed below the all-important $19K mark. The free fall was precipitated by terrible CPI data, revealing that inflation was even worse than the most pessimistic predictions. However, BTC values have since regained their lost values since the CPI release and, when reports last came in on Friday, are still on a recovery path. Data reveals that Bitcoin Whales have entered long positions on Binance and Bitmex futures exchanges in a big way.
Bitcoin (BTC) Values Sink Arrested, Courtesy Whales
Bitcoin (BTC) Values sank post-release of worse-than-expected CPI data. However, the number one crypto asset recovered to post its correlation with the U.S. stock market. Even though the CPI values were lower than in July and August, the values of the Core CPI, which have reached a forty-year high, are a cause of significant concern.
However, whenever any crypto asset is in trouble and lose value, whales enter and make a killing, and this is precisely what happened with BTC. The CPI data led to distress selling, and BTC values crashed. However, the Whales were waiting for this moment and started buying BTC on a vast scale. This led to BTC prices once again rebounding and made good a large part of their losses.
Bitcoin’s (BTC) recovery was a welcome sign and heralded a broader crypto sector recovery. It must be noted that this sudden recovery of BTC values is not due to spot purchases but Whale purchases which have brought an additional rebound in the short term until profit in futures markets.
Is $18.5K the Bottom Of Bitcoin (BTC) Values?
Bitcoin (BTC) Values have recovered and sank many times at the $18.3k level. It is a clear indication that $18,500 is the bottom, and this can be gauged that Whales had made a killing when BTC values reached this level, and there is no possibility that it can tank any further. One can see that Whales have transferred large amounts of BTC during capitulation events using the Bitcoin Exchange Inflow Mean indicator.