Bitcoin faces make-or-break test at $82.7K after whale’s $57 mln bet

Bitcoin [BTC] saw a strong recovery on the 15th of May, gaining 1.55% following positive developments surrounding the Clarity Act Bill. 

At press time, BTC was trading at $80,900, up 1.55% over the past 24 hours. Market participation has also grown notably during the same period, as trading volume climbed 25% to $44.82 billion. 

Rising trading volume alongside the asset’s price indicates that investors and traders are showing strong interest in the current trend. 

Bitcoin attracts heavy whale bets 

Data from crypto transaction tracker “Onchain Lens” reveals that amid this recovery, a whale has opened a long position of 700 BTC worth $57 million with 10x leverage.

This massive bet reflects the whale’s strong conviction in the asset’s potential upside move. In fact, significant interest has also been recorded from Wall Street.

Data from the analytics platform “SoSoValue” reveals that United States Spot BTC Exchange Traded Funds (ETFs) recorded a net inflow of over $131.31 million, indicating growing confidence and renewed buying interest from institutional investors amid the ongoing market recovery.

Now, these bold whale bets, ETF inflows, and positive developments surrounding the Clarity Act Bill are strengthening BTC’s bullish outlook. 

BTC price action signals key battle at $82,700 

According to the daily chart on TradingView, BTC’s bullish outlook remains intact as it has reclaimed the key $79,500 level, which it lost on the 13th of May. The asset currently appears to be facing resistance at $82,700, a level that has remained significant since the 6th of May.

Based on the current price action, BTC’s upside rally could continue only if it clears the $82,700 level by closing a daily candle above it.

If that happens, there is a strong possibility that the asset could witness another price surge of over 7.80% and potentially reach the $89,500 level.

On the other hand, if it fails to break above this level, BTC may continue to trade sideways. However, if it falls below the $79,500 level again, the bullish outlook could weaken significantly, as no strong near-term support appears visible.

As of now, the technical indicator Average Directional Index (ADX) is hovering at 30.70, indicating that BTC currently has strong directional momentum.

Data from derivatives analytics platform CoinGlass showed that $80,173 on the downside and $82,298 on the upside were major liquidity levels for BTC.

Traders at these levels have built $304 million worth of long leveraged positions and $706 million worth of short leveraged positions.

This indicated that bears were still dominating the market, while bulls appeared to be losing momentum. 

Final Summary

• Bitcoin’s upside rally will only be possible if it clears the $82,700 level; otherwise, it is likely to remain sideways. 
• Whale’s $57 million long bet and the $131.31 million inflow into Spot BTC ETFs suggest growing interest from whales and institutional investors.