Bitcoin (BTC) Whales Accumulate 270,000, Yet Warning Lights Flash..."Drops to $53,000"

▲ Bitcoin (BTC)

Although Bitcoin (BTC) has flashed a short-term buy signal, Tim Warren drew a line at the certainty of a bear market bottom, leaving open the possibility of retesting $53,000.

Tim Warren, host of Investing Broz, revealed in an interview with Paul Barron, host of the crypto podcast Paul Barron Network, on July 3 (local time) that he had bought some Bitcoin. However, Warren stated, “I don't think we've seen the bottom yet,” and presented $53,000 as a very strong support level. He explained that Bitcoin dropped to around $58,400, after which the Relative Strength Index (RSI) formed a higher low, creating a daily bullish divergence.

Warren viewed this signal as a potential starting point for a rebound but not the end of the bear market. He pointed out that in 2022, a bullish divergence also appeared first, followed by another low after the FTX incident. Warren said, “After a rebound in July or August, a catalyst in late August or September could pull prices down again.”

The short-term rebound target was set at $63,000 to $64,000. Warren believed that if the strong momentum continued, it could even reach $70,000 to $71,000, but emphasized that even reaching that range would not confirm a bull market reversal. He stated, “We can only acknowledge an early bottom confirmation if it breaks above $70,000 and surpasses the upper boundary of the descending channel.”

Whale accumulation also fueled market interest. The interview mentioned data indicating that whales accumulated 270,000 BTC over 30 days, a scale said to be the largest since 2013. Warren explained that whales don't wait for the exact bottom but accumulate incrementally near the bottom, stating, “It's a signal that the bottom is near, not a guarantee that the bottom has already occurred.”

A cautious rebound theory was also presented for Ethereum (ETH) and Solana (SOL). For Ethereum, recovering $1,700 to $1,750 was cited as a condition for a strong rise, with a possibility of retesting around $1,400 after a rebound to $1,800-$1,900. For Solana, it broke through the downtrend line that had continued since its peak in September last year. Analysis suggested that if upward pressure is maintained for a few more days and it approaches the $98 resistance, the probability of bottom confirmation could increase to 85%.

[Key Article Summary]

-Tim Warren acknowledged Bitcoin's daily bullish divergence and buy signal but left open the possibility of retesting the $53,000 support level.

-Bitcoin could rebound to $63,000-$64,000, or even $70,000-$71,000 in a strong scenario, but it's still too early to confirm a bull market reversal.

-Whale accumulation of 270,000 BTC, Ethereum's recovery to $1,700, and whether Solana breaks the $98 resistance were presented as key variables determining the next direction of the cryptocurrency market.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*