Bitcoin (BTC) whales guess on a rally as new information exhibits 'traditional' backside conduct.
To to on-chain analytics platform CryptoQuant, large-volume traders are shifting cash en masse to derivatives exchanges this month.
Analyst: Whales defend positions 'type native backside'
When BTC/USD hit Lowest readings since late June, whales responded kindly.
In one of its Quicktake market updates published on Sept. 7, CryptoQuant analyst Maartunn pointed to a significant increase in the monthly average number of transactions made between cash exchanges and derivatives platforms.
Whales, Maartunn argued, hedge their losses and transfer funds to be used for futures betting.
“Typical thing for local bottoms is a spike in exchange to derivatives exchange Flow Mean (30d MA). And guess what, it's happening now,” he began.
The phenomenon was already underway before the recent BTC price drop.
For Ether (ETH), derivatives exchanges were already seeing increased inflows ahead of next week's merge event. As such, ETH markets are currently ahead of Bitcoin by almost three months, Maartunn explains.
“The assumption in this thesis is that whales will deposit bitcoin to the futures exchange to open (long) positions in futures and will be able to protect their positions by establishing a local bottom,” the update concluded:
“Important to note: Ethereum has been leading the market for 80 days, mainly driven by 'The Merge' hype. This hype will end later this month, which could have a significant impact on the crypto market. This could heavily involve observations like these.”
Bitcoin Spot to Derivatives Exchange Transactions Annotated Chart. Source: CryptoQuant
The big payouts continue
Meanwhile, separate observations from monitoring resource Whalemap focused on a potential sale of 5,000 BTC, which had previously remained dormant since Christmas 2013.
Related: Bitcoin is a 'wild card' that will outperform - Bloomberg analyst
The move follows suspicions about multiple tranches of 5,000 BTC moving around the network in recent weeks after nine years of hibernation.
Someone withdrew 5000 BTC yesterday and made a whopping profit of $95,000,000
The original purchase price for it was $698, which is a 2800% increase over the current price
what a guy pic.twitter.com/mUuul2Z3YL
— Whale Map (@whale_map) September 5, 2022
Whalemap additionally reiterated the important thing on-chain help ranges in place primarily based on the buildup of huge quantities up to now. These take the type of $19,000, $16,000 and $13,000.
“Prime time for $BTC,” wrote the Whalemap staff Comments because the June lows returned.
Annotated chart of Bitcoin quantity profile. Supply: Whalemap/Twitter
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