Whale Buys $85M BTC Amid Rate Hike Fears, Bear Trap Setup Emerges
The recent Consumer Price Index (CPI) report showed inflation rising 0.4% in August, exceeding expectations and keeping America's inflation above the Federal Reserve's 2% target at 3.4%. This has major financial institutions pricing in a rate hike from the Fed next week.
Traders are becoming increasingly bearish on Bitcoin as a result of the rate hike fears, with nearly every major TradFi player factoring one in. The Long/Short Ratio for Bitcoin dropped to 0.79, indicating a shift in sentiment among traders.
However, according to AMBCrypto, technical and on-chain strength suggest that Bitcoin's resilience against rising bearishness could be a sign of a bear trap setup. If this is the case, it would mean that short positions are set up for a potential upside move.
A significant whale has added fuel to this theory by buying $85.42 million worth of BTC over the last four days, with an average price of $79,412 per coin. This accumulation is happening despite growing macroeconomic pressure and a bearish outlook on Bitcoin, indicating that whales still have confidence in its prospects.