Bitcoin (BTC) whales appear to have been driving the price of the flagship cryptocurrency in recent weeks, as experts have seen substantial whale activity around local peaks and bottoms.
Significant wallet inflows have been recorded at local peaks and bottoms, according to Whalemap analysts, presumably as large BTC holders chose to purchase or sell the cryptocurrency near these places. Whalemap pointed out in a tweet first seen by Cointelegraph that traders wanting to minimize risk while trading short timeframes might simply be imitating these whales.
BTC Buying And Selling Is Being Dictated By Whales
Notably, research has revealed that Bitcoin whales have been accumulating more BTC after dispersing their coins ahead of the latest sell-off, despite the cryptocurrency’s market collapse.
For over two weeks, the “Accumulation Trend Score” has been at an all-time high of 0.9. While filtering out miners and cryptocurrency trading platforms, the statistic depicts the aggregate accumulation or distribution tendency witnessed by Bitcoin investors on-chain. When the Accumulation Trend Score approaches 0, it indicates that investors are either dividing their holdings or have simply stopped acquiring. When it reaches a level around 1, it indicates that BTC has been heavily accumulated by investors.
Whales have most certainly been accumulating even while they trade local peaks and bottoms, according to famous cryptocurrency analyst Credible Crypto, who observed in a tweet that a particular Binance whale he has been tracking has traded at every local top and bottom. Short-term traders are “fading away,” while BTC holders with long-term time horizons are going to double down on their exposure to the cryptocurrency. The percentage of BTC owned by accounts holding for one year or more has increased.
Even an analysis conducted by Lucas Outumuro, head of research at analytics firm IntoTheBlock, suggested that the recent market drawdown has made it “harder and harder to make the argument we are not in a bear market,” and made it “clear that crypto is not for the faint of heart,” the accumulation has continued.
