Bitcoin (BTC) whales are betting on a rebound as fresh data shows ‘classic’ bottom behavior.
According to the CryptoQuant chain analysis platform, high-volume investors are moving coins to derivatives exchanges en masse this month.
Analyst says whaling costs jobs ‘that create a local bottom’
As the BTC/USD pair hit its lowest levels since late June, the whales responded nicely.
In one of his Quicktake market updates published on September 7, CryptoQuant analyst Maartunn reported a sharp increase in the average monthly number of trades made between spot exchanges and derivatives platforms.
The whales, according to Maartunn, cover their losses and transfer funds to be used in futures bets.
“Typical for local lows is a spike in trading at the moving average of derivative exchanges (30d MA). And guess what, that’s what’s happening right now.”
The phenomenon was already underway before the last drop in BTC price.
As for Ether (ETH), derivatives exchanges have already seen increased inflows ahead of the Merge event scheduled for next week. Therefore, ETH markets are currently almost three months ahead of Bitcoin, explains Maartunn.
“The assumption of this thesis is that whales will deposit bitcoins on derivative exchanges to open (long) positions in the future and can protect their positions by forming a local fund,” the update concludes:
“An important thing to note: Ether has already led the market for 80 days, mainly thanks to the hype of “The Merge”. This hype will end later this month, which could have a significant impact on the cryptocurrency market. Comments such as these could be strongly understood.”
The big money keeps coming
Meanwhile, separate views from the monitoring resource Whalemap pointed to a possible sale of 5,000 BTC, which had previously been dormant since December 2013.
Also Read: Bloomberg Analyst Says Bitcoin Is A ‘Wild Card’ To Outperform
The move follows suspicions surrounding multiple tranches of 5,000 BTC circulating on the network after a nine-year hibernation in recent weeks.
Someone managed to break out 5000BTC yesterday making a whopping profit of $95,000,000
The original acquisition price for it was $698, which is a 2800% increase from the current price
what a guy pic.twitter.com/mUuul2Z3YL
— whale map (@whale_map) September 5, 2022
Someone sold 5000BTC yesterday making a huge profit of $95,000,000. Its original purchase price was $698, a 2800% increase from the current price. What a man! pic.twitter.com/mUuul2Z3YL — whale (@whale_map) September 5, 2022.
Whalemap also reiterated the key support levels in place at the channel, based on the large volume accumulation in the past. These are the $19,000, $16,000 and $13,000 levels.
“Prime for BTC,” the Whalemap team wrote in their piece views now that the June lows are back.
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