The second quarter of this year has started, with some changes in the initial prospects. Firstly, the real effect that Bitcoin Halving will have in the midst of the crisis due to the Coronavirus worldwide is now widely questioned. However, in this article we will focus on the perspectives of the actions of Bitcoin whales during April.
Bitcoin Whale Behavior
About two days ago, the Bitcoin whales mobilized significant amounts of Bitcoin, while the cryptocurrency tries to stay above $ 6,000. According to Whale Alert, there were important transactions like the one of 152,499.06 BTC.
At the time of this writing, Bitcoin is valued at around $ 6,700, 0.97% less than it was 24 hours ago. But if we see it in a slightly longer period of time, it is more than the 6,200 USD two days ago. Of six transactions recorded today, five are from exchanges to unknown wallets, denoting some accumulation of BTC by Bitcoin whales.
Meanwhile, Ethereum is up 0.25% in 24 hours. Since the end of March, Whale Alert has reported some important transactions with this altcoin, such as one of 372,535.28 ETH four days ago.
According to studies done by Skew, and explained in this article, the price of Bitcoin probably does not meet the expectations of many this year, particularly whales. It is complex to affirm forecasts being less than a month away from May and Halving, but in the midst of the Coronavirus crisis.
Therefore, some institutional actors prefer to acquire stablecoins than other cryptocurrencies. Perhaps some whales can follow the trend, but others that act with a medium-term mind may have another plan in mind. Such a plan would consist of acquiring and accumulating Bitcoin at this time considering that the second quarter has historically been the best performing for Bitcoin.
Beyond the activities of the Bitcoin whales, another factor to consider for this accumulation has to do with what happens with the futures of the CME. Yesterday, CME traded $ 347 million in future contracts, the highest since March 16.
As CME returns to witness higher numbers, activity on other exchanges is also picking up, as evidenced by the increase in aggregate daily volumes to $ 19 billion, the highest since March 23.
What to expect
For now the resistance level is 7000 USD, to be able to say that you are in a bullish rally this should be maintained for at least two days in a row, but this has not been the case. Thus, the possibility of a pullback to $ 6,200 opens. Perhaps the accumulation of Bitcoin whales can help prevent this from happening, as they remove some liquidity from the market.
However, it should be noted that the cryptocurrency has already failed three times in the last two weeks to establish a foothold above $ 7,000. For now, it seems that the challenge for Bitcoin whales to overcome in April is to achieve that what they accumulate now can be exchanged for more than 7000 USD in the coming weeks.