Bitcoin whales seem to be pointing towards a potential coin accumulation trend. Is this the start of a new bullish cycle?
Bitcoin whales, those investors with large amounts of the cryptocurrency, seem to be pointing towards a potential coin-hoarding trend this week, according to daily data. This is an unusual weekly trend, in contrast to previous weeks where sends to centralized exchanges (CEXs) predominated.
Generally, when movements towards accumulation portfolios are predominant, the price of Bitcoin tends to rise. In the last 7 days, the pioneering digital currency has shown a growth of +1.38%, according to data from CoinMarketCap. This situation brings some relief in the midst of a downward balance trend in CEX, a situation that affects the entire crypto market, especially Ether and Bitcoin.
Is This the Start of a New Bitcoin Bull Cycle?
Now that the Bitcoin whales seem to be leaning towards an accumulation stance, the question arises as to whether or not this is the start of a new bullish cycle. The answer to this question is not easy and depends on many factors. For this analysis, only transactions over 400 BTC are taken into account.
Therefore, by only using transactions of 400 bitcoins or more, the complete whales’ movement is not taken into account. Some of these large holders tend to move thousands of coins in much smaller transactions.
This means that this analysis should not be assumed as an exact clue of what may happen to the price of Bitcoin from the whales’ movements. At most, it should be taken as a rough sample to scale.
Bitcoin Whales and their Impact on the Market
Bitcoin whales have increased their shipments to accumulation wallets, which can be defined as a bullish bias. As already mentioned, in the last seven days, the Bitcoin price has marked positive ground.
Bitcoin whales seem to adopt a different behavior than in previous weeks. In the last seven days, they seem willing to accumulate, which points to a possible bet on the rise in the price of cryptocurrency. For most of the year, shipments toward possible settlement, that is, toward CEXs, were clearly predominant.
In any case, this week, of the 128,035 BTC that were traded in shipments of 400 coins or more each, 84,052 BTC were sent to the unknown wallets (accumulation). This represents a strong 65% of all large orders. In parallel, some 7,200 BTC moved between CEX, which is equivalent to 6% of all transactions.
Although the latter has little to do with price, it indicates that the whales are busy arbitraging CEXs instead of seeking liquidation. In regards to shipments to exchanges, which means possible liquidation, these totaled 36,783 BTC this week, 29%.
Thus, the Bitcoin whales point towards a new strategy, or at least that is what it seems. However, to define whether this will be a strong accumulation trend that will positively impact the price, it is necessary to observe this week’s results. It should not be forgotten that the whales’ movements are not the only factor affecting the price of Bitcoin, although it is one of the most important.
By Audy Castaneda
