Bitcoin price jumped by more than 4%, after it managed to maintain the $27,000 level after the correction to $26.5,000, and this came after the Commodity Futures Trading Commission in the United States filed a lawsuit against Binance for violating the rules for trading cryptocurrencies and derivatives.
In the last 24 hours, the bitcoin price has been fluctuating between $26,677 and $28,610.
A massive recovery was seen in the broader cryptocurrency market as Ripple XRP led the rally among the top cryptocurrencies, with an upward move of over 18% before falling back to 9%.
Cardano (ADA) price jumped 12%, Ethereum (ETH) 6%, and Solana (SOL) 8%.
Futures related to the Dow Jones, S&P 500 and Nasdaq rebounded nearly 1% on Wednesday, while the US Dollar Index (DXY) fell to the 102.5 mark.
The Fear and Greed Index has a value of 57, which represents “greed.”
BitMEX co-founder Arthur Hayes speculates that the bitcoin bull market in 2023 will clear out FUD and deteriorating market conditions.
Whales raise the price of bitcoin:
CryptoQuant data revealed that whales are once again active on derivatives exchanges.
As the whale buildup led to a recovery in the cryptocurrency market despite the FUD uncertainty surrounding Binance.
On-chain analysis revealed a significant inflow of funds into futures trading platforms.
High flow indicates a period of whale accumulation and low money flow.
The accumulation of whales usually increases the price of bitcoin exponentially.
Whales took advantage of a dip buying opportunity to accumulate bitcoin when the price was trading below $27,000.
Whales used futures trading platforms to drive up the price of bitcoin amid low liquidity in the market.
The liquidity of the heavy demand in spot trading on Binance ranges between $28K and $30K, which indicates bullish momentum.
Traders are looking for confirmations around $29k-$30k for the next move.