Bitcoin (BTC) Whales Accumulate 270,000, Yet Warning Signs Flash... "Could Drop to $53,000"

▲ Bitcoin (BTC)

Although Bitcoin (BTC) showed a short-term buy signal, Tim Warren drew a line against definite bottom calls for the bear market, leaving open the possibility of retesting $53,000.

Tim Warren, host of Investing Broz, revealed on July 3 (local time) that he had bought some Bitcoin during an interview with Paul Barron, host of the crypto podcast Paul Barron Network. However, Warren stated, “I don't think the bottom has been reached 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 an end to the bear market. He pointed out that in 2022, a bullish divergence also appeared first, followed by another lower low during 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 a strong trend continued, it could even reach $70,000 to $71,000, but emphasized that even reaching that range would not confirm a bull market transition. 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 increased market interest. The interview mentioned data indicating that whales had accumulated 270,000 BTC over 30 days, a scale described as the largest since 2013. Warren explained that whales do not wait for the exact bottom but accumulate in installments near the bottom, saying, “It's a sign 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 the possibility of a re-decline to around $1,400 after a rebound to $1,800-$1,900. For Solana, it was analyzed that it had broken the downtrend line that continued since its peak in September last year, and 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 is considered too early to confirm a bull market transition.

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

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