On Tuesday, May 21, the Bitcoin market saw a remarkable surge in activity as big buyers, known as whales, purchased a massive $636 million worth of Bitcoin. This significant buying spree happened when the Bitcoin price rose above $71,500. One reason behind this buying frenzy could be the fear of missing out (FOMO) as people became more optimistic about Bitcoin's future.

Whales Add Huge Amount of Bitcoin to Their Holdings

Thomas Fahrer, co-founder of Apollo, a company that provides insights into Bitcoin, highlighted this development on the social media platform X. According to the data he shared, whales bought 8,958 Bitcoins in just one day, adding to their total holdings of 12,058 Bitcoins over the past seven days. This amounts to a staggering $840.32 million based on the current market price of Bitcoin. This buying frenzy is driven by FOMO, as traders and investors rush to secure their positions amid Bitcoin's volatile price movements.

Despite this significant buying activity, the Bitcoin price experienced a correction, dropping to the $69,000 level. This decline has raised questions about the short-term direction of the oldest cryptocurrency. Earlier, the Bitcoin price had risen possibly due to positive news about Ethereum ETFs, with the SEC urging issuers to file amended 19b-4 filings.

On the other hand, analysts remain optimistic about the Bitcoin price trajectory due to technical indicators. The strong inflows into Spot Bitcoin ETFs have also positively impacted market dynamics. On Tuesday, Bitcoin ETFs saw a remarkable influx of $305.7 million, led by BlackRock's IBIT. A significant portion of the whale purchases comes from these ETFs since their launch in January 2024. Analysts are calling for further positive flows to help the BTC price reach new highs. Any positive news about Bitcoin could also act as a catalyst.

Will Bitcoin Price Bounce Back?

The Bitcoin price extended to the $69,000 level and remained in a downtrend for a while. However, it experienced a major rebound, surpassing $70,000 despite still being in the red. As of writing, the BTC price was down by 1.10% to $70,098.61 on Wednesday, May 22. The crypto held a massive market valuation of $1.38 trillion, while the trading volume dropped 25.44% to $39.72 billion. Prominent crypto analyst Ali Martinez weighed in on the situation, highlighting the significance of the TD Sequential, a technical analysis indicator known for predicting market turning points.

Martinez's analysis suggests that despite the recent dip, Bitcoin could be poised for a rebound based on this buy signal. The TD Sequential indicator is a popular tool among traders for identifying potential trend reversals and price movements. A buy signal on this indicator often leads to increased market confidence, potentially driving prices higher.