In the recent price adjustment, large Bitcoin holders appear to be buying aggressively, which makes people optimistic that this sell-off may be coming to an end.

According to data from Glassnode, Morgan Creek’s Anthony Pompliano recently concluded that Bitcoin whales (an entity holding 10,000 to 100,000 BTC) bought 122,588 BTC at the peak of the market crash on Wednesday. Most of the traffic on cryptocurrency exchanges comes from the United States, as evidenced by Coinbase’s Bitcoin premium once reaching $3,000.

The cryptocurrency hedge funds interviewed by Bloomberg also reiterated that they are in fact low-price buyers. London-based MVPQ Capital and ByteTree Asset Management, and Singapore’s Three Arrows Capital have all bought in this round of decline.

Kyle Davies, co-founder of Three Arrows Capital, told Bloomberg:

“Those who borrowed money to invest, they are erased from the system [...] Whenever we see large-scale liquidation, it is an opportunity to buy. If Bitcoin and Ethereum are within a week I won’t be surprised to recover the entire decline.”
As Cointelegrah recently reported, at least one well-known whale that sold Bitcoin for $58,000 not only restocked Bitcoin, but also increased their Bitcoin holdings. This unknown entity sold 3000 BTC on May 9, and then bought 3,521 BTC back in three separate transactions on May 15, 18, and 19.

On Sunday, the price of Bitcoin fell below $32,000, and traders continued to test the limits of the new bearish range. On Wednesday, Bitcoin briefly fell below $30,000—a level that seems extremely unlikely to be broken down—and then quickly recovered to $37,000. However, the resistance above limits Bitcoin’s rebound to no more than $42,000.