As a seasoned crypto investor with a decade of experience under my belt, I find the recent whale activity surrounding Bitcoin intriguing. The increase in inflows to exchanges without significant selling pressure is unusual yet promising. It’s like these whales are playing chess while the rest of us are still learning checkers.
Since the U.S. election ended on November 5, there’s been a significant rise in Bitcoin-related activities by ‘whales,’ as more Bitcoins have been moved to exchanges from actively used whale wallets.
Contrary to common assumption, it appears that large crypto holders haven’t seen a substantial increase in profit-taking actions, as suggested by an analyst named onatt in a recent post on the QuickTake platform.
Whale Activity Suggests Market Stability but Signals Potential Risks
According to the analysis done by Onatt from CryptoQuant, it’s highlighted that even though there’s an uptick in Bitcoin deposits into exchanges, there appears to be minimal urgency among whales to sell off their holdings right away.
Rather than selling off their Bitcoin, it appears that these large investors are adopting a “let’s see what happens” approach, according to the analyst’s report. They seem to be using their Bitcoin for various purposes such as risk management, private transactions, or securing loans.
While this method seems to indicate market stability, Onatt recommends keeping a close eye on these movements to predict any potential effects they might have on the market.
Delving deeper into this matter, Onatt’s findings suggest that the Adjusted Spent Output Profit Ratio (SOPR), a tool used to monitor profit-making actions, hasn’t shown substantial shifts as of now.
Historically, a significant amount of Bitcoin moving into exchanges has usually led to higher selling pressure. However, contrary to past trends, recent instances might not be indicative of increased selling but rather strategic moves by major players, or ‘whales’, in preparation for possible future market fluctuations.
Additionally, Onatt pointed out that although the immediate threat of sell-offs seems minimal, the persistent increase in Bitcoin inflows into exchanges might signal potential future price fluctuations.
Bitcoin Market Performance
So far, Bitcoin seems to have reached a plateau after surpassing $95,000 in value. Over the recent weeks, it has struggled to break through this price barrier, yet has successfully held its ground against repeated efforts by the bears to drive it back below $95,000.
In the last seven days, Bitcoin’s growth has been relatively modest, amounting to approximately 2.5%. However, in the past day, it has experienced a minimal decline of about 1.2%, trading at around $95,837 as of this moment.
It’s quite intriguing to note that while Bitcoin’s daily price has been decreasing, its trading volume has surprisingly risen. For instance, the daily trading volume was around $60 billion on November 29, but it has now reached $94.5 billion.
Considering Bitcoin’s recent price trend, it’s important to mention that the surge in Bitcoin trading activity could potentially be due to sell-offs. As per analyst Ali X, Bitcoin has developed a head and shoulder pattern on its 1-hour chart, suggesting a potential drop towards $90,000.
The digital currency Bitcoin ($BTC) might be developing a ‘head-and-shoulders’ chart formation. If this pattern holds true, it could lead to a possible drop in its value down to around $90,000.
— Ali (@ali_charts) December 3, 2024
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2024-12-04 07:37