Key facts:
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Calculated sales of thousands of BTC can cause short-term price drops.
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When they spot a local low, the whales often buy BTC to trigger the rally.
The large holders or holders of bitcoin (BTC) have the power to change the trend of that market with timely purchases or sales, says a recent Whalemap report. On the other hand, that influence has grown in recent days with a significant increase in entities with more than 1,000 BTC and those that accumulate more than 10,000 BTC, also known as whales, according to data from Glassnode.
Movements in large portfolios, whether buying or selling, can lead to immediate price movement. Because of this, traders who adopt a short-term investment strategy can find useful indicators by following in the footsteps of the whales, according to to analyzes disclosed on Twitter.
The tactics used by the whales include starting a BTC accumulation during a local low and selling when highs occur in a selected short period. In the chart below from @CredibleCrypto, the analyst refers to a whale trading on Binance, whose movements in the addresses it controls have marked highs and lows in the price of BTC in the last two weeks.
Market interventions for that specific whale, followed by @CredibleCrypto, occurred with select purchases in late May and this first week of June; exactly in the areas marked by the green rectangles on the graph.
The sales (orange rectangles), on the other hand, occurred once the price had approached USD 32,000. That is, when there was a reputation, specifically after the rally on May 30 and the boom that occurred recently on Monday June 6.
The price reacted upwards after the purchases and downwards after the salesas @CredibleCrypto points out, referring to purchases from the aforementioned whale:
I’ve been watching how it comes and goes. Accumulating at the lows, capping the price at the highs. He recently bought 2,000 BTC ($60 million) at the local lows of $29,200 before this pump we’re seeing now.
@CredibleCrypto en Twitter.
Following the bitcoin whales
An element that corroborates this thesis is reflected in the graph of the analytical firm Whalemap. This handles the concept of “bubble of whales”, which is associated with a great activity of these large holders. Specifically, Whalemap locates an address or group of addresses that hold more than 1,000 BTC and are controlled by a single entity, and documents BTC sales by that entity.
With these data, sales are indicated on the price graph, with a green circle proportional to the volume of BTC sold. It can be seen in the graph that sales generally cause price drops in a very short period of time., although some of the falls may be more pronounced. It could be inferred that the latter occurs if there are several whales using the same strategy, or when there are also macroeconomic factors affecting the market.
A large enough volume of BTC sold can be associated with the creation of a given resistance level, as can be seen in the graph. A succession of major sell-offs can lead to the resistance level lowering, as seen in the chart above. Whalemap suggests that the current resistance level is $30,619, the product of a series of selling by a whale in recent days.
As if that were not enough, holders of more than 1,000 BTC are on the rise, as can be deduced from the growth of Bitcoin addresses with more than 1,000 BTC, in figures the Glass node. These went from 2,200 on May 25, to 2,230 this Tuesday, June 7. In the same period, mega whales with more than 10,000 BTC also grew, from 96 to 100.
Although there are few holders at these levels, it must be considered that the members of this exclusive club have accumulated at least USD 300 million at the current level of the BTC price. According to the CriptoNoticias price indexthe BTC price is 30,239, at the time of writing this article.