During this week Bitcoin has been leading reviews on cryptocurrency news sites, after BTC reached its annual high. However, in order to get an idea of the whole picture we must also take into account the activity of the Bitcoin whales. How have you reacted to this upward trend? Let’s see.
Since the beginning of October, in CryptoTrend we have reviewed that the Bitcoin whales have maintained a cumulative trend, which in one way or another has driven the price of the cryptocurrency. This week, after PayPal’s announcement to accept cryptocurrencies, a lot has happened.
The number of Bitcoin whales has increased, the number of active addresses as well, and the price was not far behind either. Overall, a good week for BTC bulls.
At this point we will see that the Bitcoin whales were still accumulating during this uptrend, which means that they are sure that BTC can continue to rise. Obviously, you can do it even more if these actors continue to remove their cryptocurrencies from exchanges, but we will see in detail the proportion of their actions.
In order to analyze this aspect, we take as a reference the reports given by the tool Whale Alert On twitter.
Bitcoin whales accumulate BTC as it reaches its annual high
During this week, Bitcoin whales have carried out 43 operations, through which they mobilized a total of 97,033 BTC. As the summary table shows, 35.55% of this total was mobilized on Wednesday, October 21. On this day, the accumulation of BTC was the protagonist, exactly 17,304 BTC went from exchanges to unknown wallets through eight transactions.
Then, October 22 was the second most active day (33.98% of the weekly total was mobilized on this day). However, as we approached the weekend, the Bitcoin whales decreased in frequency and force of movement.
At a general level, we can say that although the predominant trend was accumulation, it cannot be ignored that many whales took their tokens to exchanges in search of profits. The accumulation of whales was 46.20% of the total. That is, 44,836 BTC.
Meanwhile, 19.22% of the weekly total was mobilized from unknown wallets to exchanges (18,642 BTC). In fact, this trend was the one that prevailed this Friday, October 23.
General analysis
Therefore, we can say that Bitcoin whales expect more from BTC, which is why they keep accumulating and holding tokens. However, a smaller group began selling their tokens to take advantage of the profits. A liquidation is likely, but not enough to lessen the rise that the other side of investors seek by drawing liquidity from the market.
It is also valid to note that already at the end of the week the accumulation decreased considerably, thanks to the fact that in those moments it was when BTC increased more in price.
As of this writing, BTC is worth $ 13,034.39 according to CoinDesk. This represents a 0.50% decrease from yesterday, but it does not mean that the cryptocurrency has lost its bullish momentum.
Possible scenarios
In the short term, the actions of the Bitcoin whales could be defined even more clearly, because although these actors have the power to influence the market, they do not exclusively determine it. Several things can happen:
- The whales decide to keep accumulating until the price goes up, and then liquidate for short-term profits.
- The whales decide to keep their tokens for a longer term, and sell when the market is already convinced of the bullish strength of Bitcoin.
- A third scenario, a little less likely, is that they simply decide to liquidate what they have been accumulating since the beginning of the month, and interrupt the rise of the cryptocurrency. We could evaluate this in more detail if we compare it with what have been the strongest bets in buying BTC futures.
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