The prolonged consolidation of the BTC price is doing its job. It increases tension and puts question marks over the direction in which the price will go. Positive data-on-chain have not, so far, been reflected in the situation on the chart… So what is the probability of a correction and what do bitcoin whale addresses have to do with it?
Are the whales loading the bags before the dips?
According to Santiment data, the dimension of bitcoin millionaires who have between 100 and 10,000 BTC parked on their addresses continues to grow. After May 21, the stock of these whale addresses increased by a total of 100,000 BTC .
Now, while from the outside it looks like a pro-growth signal, zooming out to look at the chart allows you to draw much more far-reaching conclusions.
source: Santiment The
number of addresses holding 100 to 10,000 BTC has historically risen, disregarding overall market sentiment. There have been small declines in between, yet the whales
have continued to hold their cryptocurrencies for a much longer period that has managed to span multiple market cycles.
The claim that the current increase in bitcoin’s accumulation dimension at the largest addresses increases the likelihood of a price increase may not only be premature, but also completely wrong.
Are whale addresses causing more chaos?
While the above narrative still remains uncertain for both bullish and bearish scenarios, according to Ki-Young Ju, whales are consistently depositing BTC into exchange wallets.
According to the CEO of CryptoQuant, the 72MA whale ratio has been consistently above 85% for some time. Historically, this pattern of data has been a prelude to declines.
One of the major upside support levels seen during the downtrend has been that bitcoin has positively closed its price position above $34,500 since May 3. Last
m week closed below, however, and the current week is also approaching a close below $34,500.
From a momentum perspective, this is a structurally bad situation as volumes would normally be filled in liquidity pools on both sides of the fence. The further BTC falls, the more capital inflows the liquidity pools will experience, and the risk of further price declines will increase significantly.
From the Editor
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