Unless Bitcoin price heads towards the $36,000, whales will still accumulate
According to Oklink, the number of significant transactions spiked rapidly during the recent sell-off, which could be the first sign of selling pressure emerging from large Bitcoin holders. An indicator provided by OkLink that tracks the number of transactions more significant than 500 BTC. At the time of writing, Bitcoin price is trading at $42,115, down 11% in the last seven days.
BTC/USD 4-hour chart | Source: TradingView
Whales might start moving after increased volatility on the Bitcoin price
According to Oklink, yesterday, the number of transactions more significant than 500 BTC reached 566, and the number of significant transactions in a single day was the highest since March 13, 2020.
The increase in the number of trades has come after a significant drop over the weekend, which is expected as traders are primarily active on weekdays. But before facing a decrease in trading activity over the weekend, the indicator showed another spike on September 14, which may be a reflection of large transactions on exchanges that were later realized on the market.
After the 15% sell-off, even more, whale-level transactions were made. Additionally, various on-chain data providers have not shown any increase in exchange cash flows, which means that although major wallets are selling their assets, institutional investors are not eager to sell their assets.
According to Glassnode, there have been no obvious signs of long-term holder position movement on the on-chain recently, which may mean that long-term Bitcoin holders have no intention to sell for the time being.
Spent Volume Age Bands chart | Source: Glassnode
The above indicator shows that old Bitcoin holders have not redistributed their assets in the market. Plus, the distribution of funds and spending rates have been slowing down. After the September 21-22 sell-off, spending rates have not been spiking up or gradually increasing, confirming the thesis about hold sentiment among institutional investors.
Whales in control unless the price drops to $36,000
Speaking to the TD Ameritrade Network, Scott Bauer, the CEO of the professional trading platform Prosper Training Academy said that after the recent correction, whales are taking advantage by accumulating more of the asset, partly contributing to the volatility experienced.
Additionally, Bauer emphasized that Bitcoin price has been stuck in its current range for a long time, allowing whales to accumulate. Unless Bitcoin price heads towards the $36,000 mark, whales will still have the upper hand. He notes that crypto markets presented the perfect investment opportunity after the stock market sold off on Sunday going into Monday when Bitcoin plunged by almost 10%.
“Bitcoin has been stuck in a range. It happens to be at the shallow end of this range. It has been stuck in a range for quite some time now until we break through the $42,000 and change level. But until we, we break that $42,000 and get down to maybe the $36,000 or $37,000 level, I think the bulls still have the upper hand”, Bauer said.
His sentiment comes after Bitcoin’s volatility accelerated Monday, suggesting that the asset builds a fresh impetus for another record price. Bitcoin was trading above the $50,000 earlier this month, which is considered an important sentiment point.
On September 21, Bitcoin hit a current price of $39,000, but it immediately rebounded above $42,000. Trading volume remains relatively low, with market participants preferring to hold rather than spend their assets buying or selling.
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