Bitcoin Whales Keep Accumulating Despite Price Drop: September 23rd Analysis

Bitcoin Price Dips, But Large Holders Remain Unfazed

Bitcoin has started the week in the red, dropping below the $115,000 threshold. This downward movement has triggered a wave of liquidations across the cryptocurrency market. According to market data, approximately $1.7 billion worth of positions have been liquidated, with the vast majority being long positions. Despite this decline, Bitcoin remains well-positioned on the weekly timeframe, with the EMA 9 and EMA 18 moving averages continuing to support the price.

At present, Bitcoin is managing to hold above the $110,000 level. However, the cryptocurrency is showing a 1.5% decline over the past 24 hours and a 2% drop over the week. When measured against the US dollar, Bitcoin has appreciated by 6% over the last three months and nearly 30% over the past six months.

Whales Continue Accumulating Despite Market Uncertainty

One of the most telling indicators of Bitcoin's long-term outlook is the behavior of large holders. Addresses holding more than 100 BTC (worth approximately $11 million at current prices) have been steadily increasing their positions throughout 2024, and this trend shows no signs of reversing despite the recent price volatility.

This accumulation pattern suggests that these sophisticated investors view the current price dip as a temporary correction rather than the beginning of a prolonged downtrend. They appear to be positioning themselves for higher prices in the coming months, demonstrating strong conviction in Bitcoin's fundamentals.

Adding to this bullish signal, Metaplanet recently purchased over 5,400 BTC, joining the ranks of the top five Bitcoin holders. Such significant institutional buying during price weakness often indicates strong underlying demand for the asset.

Technical Analysis: Bitcoin at a Critical Junction

From a technical perspective, Bitcoin is currently at a crucial support level. After being rejected at the $117,000 resistance, the price fell to the 4-hour support level at $111,000. While Bitcoin has stabilized above this threshold, it faces downward pressure from the bearish EMA 9 and EMA 18 moving averages.

If sellers maintain control and the support level breaks, we could see Bitcoin drop below $110,000. Conversely, if the $111,000 support holds and enables a bounce, the price could retest the resistance at $117,000. The RSI indicator is trending downward, suggesting relatively fragile momentum in the short term.

Market Context: Fed Rate Cut Impact

On September 17th, Federal Reserve Chairman Jerome Powell announced a 0.25% interest rate cut—the first reduction by the Fed in 2025. However, this announcement did not have the anticipated positive effect on Bitcoin's price. Instead of surging beyond $120,000, Bitcoin retreated below $115,000.

This response indicates that the rate cut was largely priced into the market, or that investors were hoping for a more substantial reduction. It's worth noting that despite Bitcoin's cautious reaction, the broader altcoin market has managed to reach an all-time high in total capitalization, suggesting that risk appetite remains robust in certain segments of the crypto market.

Looking Forward

Bitcoin needs to bounce from current levels to maintain support above $110,000. The behavior of large holders (those with more than 100 BTC) provides a reason for optimism, as they continue to accumulate despite short-term volatility.

While some market predictions—such as Arthur Hayes' forecast of $250,000 Bitcoin by year-end—may seem ambitious given current price action, the continued accumulation by large players suggests strong underlying confidence in Bitcoin's long-term trajectory.

As we move into the final quarter of the year, Bitcoin's ability to hold key support levels and the ongoing behavior of institutional and large individual investors will be critical factors to watch in determining the cryptocurrency's medium-term direction.