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What Bitcoin whales tell us about the BTC market this week

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Bitcoin whales continue to move in the waters of the crypto world. In this article you will find a summary of what the week of September 20 to 26 has been for these market players, Has its influence been felt in the BTC market? Find it out.

As usual, the source used to obtain all the information that you will find in this publication comes from the Whale Alert reports on his Twitter account.

Bitcoin whales mobilize 120,291 BTC in seven days

The flow of Bitcoin whale activity this week shows that they do not miss any opportunity. Over the last seven days they have mobilized a total of 120,291 BTC through no more and no less than 54 operations.

However, the busiest day for Bitcoin whales was Wednesday, September 23. On this day, the whales mobilized a total of 51,851 BTC through 17 transactions. That is, on this day 43.11% of the total weekly BTC was mobilized (31.48% of total transactions).

Likewise, this was the day that Bitcoin whales were more inclined towards accumulation, taking 23,151 BTC from exchanges and taking it to unknown wallets through seven transactions.

While accumulation certainly dominated on September 23, you have to look at the bigger picture.

, What Bitcoin whales tell us about the BTC market this week, Forex-News, Forex-News
Summary chart of Bitcoin whale activity from September 20 to September 26, 2020. Source: Whale Alert

Analysis of the general trend of Bitcoin whales during the week, and its influence on the market

Taking the summary table as a reference, we will note some details. Despite what it may seem at first glance, 36.51% of the week’s transactions were from unknown wallets to exchanges. Meanwhile, the weekly accrual percentage was slightly lower (36.46%).

This means that the whales were slightly inclined towards selling their BTC on exchanges. An interesting detail is that, although they accumulated large amounts of BTC last Wednesday, the rest of the week the predominant trend was the introduction of liquidity in the market.

Likewise, we can notice that Bitcoin whales seem to be quieter during early days and weekends. This is evident when noting their activity on Sunday 20, and Saturday 26.

, What Bitcoin whales tell us about the BTC market this week, Forex-News, Forex-News
In this graph you can observe the oscillation in the activity of the activities of the Bitcoin whales in the market. Source: CryptoTrend

The weekend has been pretty quiet for cryptocurrencies, as has Bitcoin whale activity. According to Jason Lau, COO of OKCoin, open interest in the futures market is the source of that calm.

BTC’s aggregate open interest remains flat despite the overnight price gain on September 25. Therefore, no one is opening new positions at this price level.

Another indicator of the observed calm is the funding of bitcoin exchanges, which remains in negative territory or close to zero. In the case of whales, they only introduced 4,000 BTC, which for the market as a whole is not too big. This is a sign that derivatives traders are still hesitant to place bullish bets.

Additional comments

As of this writing, Bitcoin changes hands at a price of $ 10,779.30 according to CoinDesk. This represents an increase of 0.39% compared to yesterday.

Now, looking at the weekly price chart, we can understand a little more about the actions of the Bitcoin whales.

, What Bitcoin whales tell us about the BTC market this week, Forex-News, Forex-News
Weekly chart of the price of Bitcoin (BTC). Source: CoinDesk

Bitcoin whales began to introduce liquidity to the market while BTC was worth close to $ 10,900, probably because they anticipated a drop. This drop was supported by its introduction of bitcoins on exchanges as of Monday.

This led to BTC falling back to touch $ 10,400. Then, as he struggled to get to $ 10,500, the whales took advantage to accumulate BTC en masse. Perhaps it is because they were looking to take advantage of the pullback, and at the same time draw liquidity from the market to some degree. With this, the price of the cryptocurrency was able to rise a little, but not for long.

Conclusions

Despite everything mentioned above, something we cannot ignore is that BTC is above its 10 and 50 day moving averages, a bullish signal for market technicians.

However, the difficulty of reaching all-time highs, coupled with greater economic uncertainty in the face of rising COVID-19 cases, make an exaggerated run to the upside unlikely in the short term.

At the moment, Bitcoin has two tasks: not to fall below US $ 10,000, and definitely exceed the level of US $ 11,000. The latter is necessary in order to begin to discuss whether or not it could take off until it exceeds its all-time high.

The latter is supported by Lau, who believes that we must see more financing in the market before we can talk about a definitive rise. “Until funding is positive again, it’s hard to see us go much higher. For me, that’s the best indicator of where we are right now”, He explained.

Finally, what we have determined from the activity of the Bitcoin whales in the market is that the big players are not focused in a particular sense. The whales, like most investors, are testing the waters right now.



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