- Bitcoin could rally up to the $62,000 level, based on historical price momentum.
- BTC exchange reserve data showed potential buying pressure from investors, as it has significantly fallen in recent days.
In this bearish market sentiment, crypto whales were aggressively buying the dip as major cryptocurrencies, including Bitcoin [BTC] and Ethereum [ETH], saw significant price declines.
On the 2nd of September, on-chain analytic firm Spot On Chain made a post on X (formerly Twitter) that a Bitcoin whale had purchased nearly 1,000 BTC worth $57.4 million from Binance [BNB].
Bitcoin whales buy the dip
Additionally, the same whale had purchased nearly 2,000 BTC worth $117 million, from Binance in the last four days at an average price of $58,525.
With the recent purchase, the whales’ Bitcoin holding increased to 8,559 BTC worth $494 million.
Previously, the whale had dumped a massive 7,790 BTC worth $467 million of BTC in July 2024, before the market sentiment turned bearish.
Upcoming levels
AMBCrypto’s look at TradingView’s data revealed that the king coin was at a crucial support level of $57,300 at press time. On a daily time frame, it was trading below the 200 Exponential Moving Average (EMA).
The price below the 200 EMA indicated that it was in a downtrend at this time.
Source: TradingView
In this market downturn, whenever BTC reaches this level, it experiences buying pressure and an upward rally. There is high speculation of an upside rally up to the $62,000 level this time.
Additionally, the technical indicator Relative Strength Index (RSI) was in an oversold area, indicating potential price reversal, which is a positive sign for investors and traders.
Bullish outlook emerges
Other on-chain data also supported this bullish outlook. CryptoQuant’s BTC exchange reserve data showed potential buying pressure from investors, as the exchange reserve has significantly fallen in recent days.
Source: CryptoQuant
Meanwhile, CoinGlass’s BTC Long/Short Ratio chart stood at 1.0043 at press time, the highest level since the 26th of August, indicating bullish market sentiment.
BTC was trading near the $57,730 level at this time, having experienced a modest price drop of a decline of 0.8% in the last 24 hours. Meanwhile, its Open Interest dropped by 1% during the same period.
Key liquidation levels
AMBCrypto’s look at CoinGlass’ Bitcoin exchange liquidation map signaled that bulls were dominating and potentially liquidating short positions at press time.
Major liquidation levels were near the $56,760 level on the lower side and the $58,300 level on the upper side, as traders are over-leveraged at these levels.
Source: CoinGlass
Read Bitcoin’s [BTC] Price Prediction 2024–2025
If the sentiment remains bearish and the BTC price falls to the $56,760 level, nearly $600 million worth of long positions will be liquidated.
Conversely, if the sentiment shifts and the price rises to the $58,300 level, approximately $390 million in short positions will be liquidated.
