The accumulation trend has been steady by a considerable margin, but it is necessary to continue monitoring the activity for any changes.
Most market participants could be accumulators and long-term holders, as coins go from highly liquid exchange balances into their wallets.
The price of Bitcoin attempted to break above USD 44,000 early this week. However, it could not sustain momentum for long and is currently trading at USD 42,130. According to Coindesk, the recent activity done by the Bitcoin whales indicates that the value of Bitcoin has hovered between USD 40,783 and USD 43,040.
Bitcoin whales maintain trends that everyone should know, especially when it comes to accumulation. Nobody knows what they may do next with their tokens in a scenario where the cryptocurrency intends to regain momentum. A recent analysis shows how those holders accumulate the cryptocurrency, helping to make accurate predictions about what they will do with it.
The Bitcoin Whales Have Been Recently Accumulating Considerable
In the last hours, the whales have mobilized around 7,581 BTC through six different operations. The predominant trend is accumulation since 6,881 BTC went from cryptocurrency exchanges to unknown wallets through five transactions. The volume mobilized by those holders is equivalent to 90.77% of the daily total.
The introduction of liquidity into the market through a transfer of 700 BTC transferred has been the second most marked trend so far. The latter volume equates to 9.23% of the total.
Finally, there have been no operations between exchanges or between unknown wallets. The accumulation trend in the last hours has been steady by a considerable margin. However, it is necessary to continue monitoring the activity of Bitcoin whales for any changes in those trends.
What Has Been the Performance of Bitcoin in the Last Week
Last week, the BTC market experienced volatile price action to the downside, opening at USD 47,328 and going down to a low of USD 39,876. Continued pressure on the industry from regulators, challenging conditions in Chinese debt markets, and another ban on Bitcoin in China accompanied the sell-off in equity markets.
According to a recent report by Glassnode, there is a very high probability that most market participants are accumulators and long-term holders. That is because coins migrate from highly liquid exchange balances into the wallets of some investors. Whale Alert reports contribute to corroborating the latter in the last hours.
The same report revealed that holders will very likely re-spend those coins in response to market volatility. However, those assets might become increasingly thin and inactive and more likely to remain in cold storage over time.
How the Activity of the Whales Affect the Prices of Bitcoin
The effect of the whales on the prices of Bitcoin has become increasingly apparent this year. According to Chainalysis, they started to buy significant amounts of BTC in June. Those investors had over USD 50 million in their wallets.
Philip Gradwell said that prices go up for at least twenty-eight days when Bitcoin whales start buying. After that, the value of the cryptocurrency starts to drop as they must make a profit when sales begin. Of course, only the cleverest investors profit from those moves in such cycles.
By Alexander Salazar
