Bitcoin whales don’t seem to want to sell their BTCs in the short term, and here’s some data to back it up. What are the implications of this?
The price of Bitcoin (BTC) is fluctuating due to the volatility in the market today. After reaching USD 14,100 for the first time since 2017, after a sharp decline. However, the data on Bitcoin Supreme shows they have little interest in selling in the short term. That is, they are maintaining a Hodl strategy.
From this trend in whales, it can be understood that they don’t expect a major setback in the short term, or that even if they do, they will be able to recover. Normally, a low level of whale activity is an indicator of a possible upward trend.
Grayscale could soon control 5% of the circulating supply of Bitcoin
What indicators or factors can be monitored to corroborate this informatio
In the crypto market there are many indicators that can be used to have a clearer picture of what is happening with investors. In this case, the leverage ratio estimated by BTC shows that trading in the derivatives market is not decreasing.
Another important factor for having a good picture is that of Bitcoin Whale clusters. These are formed when the newly purchased BTC is held in place. Clusters show areas where whales have previously purchased Bitcoin and are often considered support levels.
In that regard, Whalemap determined that the levels of $12,987 and $13,650 are critical, as many whales accumulated at this level. Thus, the perspective is that this level must be overcome in order to speak without hesitation of a short-term bullish rally. Another important fact is that technically speaking, the support is USD 13,000, if BTC stays above that, there is no talk of a downward trend.
Do the whales decide to liquidate their BTC? This is what the weekly summary says
Do U.S. elections influence Bitcoin Whales‘ actions?
As of this writing, the United States has not yet announced a winner of the election. While BTC experienced a 4% drop in this context, it has been relatively resilient. As a result, whales and investors appear to be confident.
But volatility may increase after the results, so far everything seems to point to Joe Biden as a possible winner, but Donald Trump has already announced that he believes there may be fraud.
In such a scenario, „cascading liquidations“ are possible. This term is used for a situation where futures contracts are liquidated consecutively in a short period of time. If this happens, volatility increases.
Also, there are fewer whales selling on the US exchanges, typically used by Bitcoin whales. According to CryptoQuant data, there’s a low Bitcoin entry on the U.S. exchanges, which can also be confirmed by monitoring Whale Alert reports.
What to observe besides the whales‘ lack of interest in selling their BTCs in the short term?
Whalemap data suggests that a closing above $14,000 is critical in the month of November. „If that happens, as in December 2017, BTC could reach a new historic high in December.
However, in order to be able to say that this is tangible, not only the activity of the whales but also that of the miners and the impact that the results of the US elections may have on the markets in general must be monitored.