Bitcoin (BTC) whales play on recovery as fresh data shows “classic” bottom behavior.
According to on-chain analysis platform CryptoQuant, large-scale investors are moving coins to derivatives exchanges in bulk this month.
Commentary: Whales protect their habitats by “creating local bottoms”
As BTC/USD hits The lowest level since late June, the whales were responding well.
In one of the Quicktake Market Updates posted on September 7, CryptoQuant analyst Martin noted a significant increase in the monthly average of exchanges and the number of transactions between the platforms.
Whalers are hedging their losses and transferring funds to be used for future bets, Martin argued.
“A common practice for local bottoms is to add the stock to the underlying moving average (30d MA). And guess what’s happening?” he began.
The event was underway before the recent BTC price drop.
On Ether (ETH), derivatives exchanges are seeing increased inflows in preparation for next week’s merger. As such, ETH markets have currently been leading bitcoin for nearly three months, Martin noted.
“The assumption in this theory is that whales will deposit Bitcoin on a dynamic exchange that allows them to open future (long) positions and protect their position by forming the bottom of their environment,” the update concluded.
Important thing to note: Ethereum has been leading the market for 80 days, mainly driven by ‘The Merge’-hype. This hype will end at the end of this month, which can have a significant impact on the crypto-market. This may include such observations.
High spending continues.
Meanwhile, exclusive observations from Resource Whalemap previously focused on a dormant 5,000 BTC sale since Christmas 2013.
Related: Bitcoin is a well-placed ‘wild card’ – Bloomberg analyst
The move follows suspicions of 5,000 BTC moving around the network in recent weeks after nine years of dormancy.
Someone spent 5000BTC yesterday, making a huge profit of $95,000,000
The original purchase price for it was $698, which is a 2800% increase from the current price
What a man pic.twitter.com/mUuul2Z3YL
– whalemap (@whale_map) September 5, 2022
Whalemap also reiterated key support levels on the chain based on previously high volume stock. These take the form of $19,000, $16,000 and $13,000.
The Whalemap team wrote “Prime Time for $BTC”. Comments As the June lows returned.
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