Whales Absorb Panic Selling, Form Key Support Level for Bitcoin

CryptoQuant analyst Woominkyu believes that during Bitcoin's recent price drop to $60,000, 'smart money' was buying up the dip while retail investors panicked. On June 2nd and 3rd, dormant wallets moved a significant amount of BTC to exchanges, causing the price to fall from $71,000.

When Bitcoin dropped to the $60,000 to $61,000 range, on-chain data showed that whales were dominating buying activity, with a whale ratio on exchanges reaching 61.6%. This indicates that large investors were absorbing market panic selling.

In the past five days, whales withdrew 11,422 BTC from exchanges, valued at around $700 million, and transferred them to cold storage, resulting in significant net outflows from exchanges. Woominkyu believes that this transfer of chips from weak hands to strong hands has been completed, forming a key support level before the next leg up for Bitcoin.