470 Interactions, 2 today
Bitcoin is back above $19,000 after repeated tests of below $18,000. Dip buyers have proven too strong to send prices tumbling, but at the same time, whales keep resurfacing, again and again, to sell down any intraday rallies as soon as they begin to hover above $19,250 for an expended period of time.
This weekend’s retest of highs ahead of the critical weekly close resulted in yet another whale sighting, as shown through the BTC supply flowing into top cryptocurrency exchanges. Will whales finally succeed and send the recent rally toppling down lower, or will dip buyers soon overwhelm the large wealth investors, and cause the cryptocurrency to rocket higher?
Bitcoin Weekend Rally Stops With Whale Encounter
The cryptocurrency market never sleeps and trades 24/7, 365 days a year, even on holidays, without exception. Those who invest in the emerging asset class don’t enjoy the same luxuries of rest and a distinct lack of stress that traditional market investors do.
In exchange for the rollercoaster ride, however, the first-ever cryptocurrency can go on sizable rallies that make up for months of lost sleep and worry.
During the weekends, however, is when liquidity is lowest, and large orders can do the most damage. And that could be why this weekend, whales decided to show up and crash the party ahead of the Sunday night close.
A fractal points to a phase of painful sideways and shakeout in both directions | Source: BTCUSD on TradingView.com
However, it also could be whenever Bitcoin price makes it near its former all-time high of around $19,500 that whale-sized orders suddenly fill.
Whale Watching: How Quantitative Analysis Can Tip Crypto Investors Off About Coming Moves
Anyone who has spent even a meager amount of time around the crypto market has likely come across a Bitcoin price chart with dozens of lines, indicators, and what might as well be hieroglyphics for those new to technical analysis.
But quantitative analysis – a cornerstone of fundamental analysis – can be easier to understand, and in crypto can tip traders off on any large whale activity, and more.
In traditional finance, quant analysis looks at company revenue, operating expenses, and even stats pertaining to the business sector itself. None of this exists in crypto, so instead, quant analysis looks at BTC inflows and outflows to and from exchanges, and the amount of BTC held in each wallet.
All of this data is transparent via the blockchain, and websites such a CryptoQuant.com have emerged that provide detailed insights into Bitcoin into whale activity.
A fractal points to a phase of painful sideways and shakeout in both directions | Source: All Exchanges Inflow Mean on CryptoQuant.com
It is this data that might have tipped off a trend change in advance and did a far better job at doing so than as many as ten technical indicators that have been screaming reversal and bearish divergence for weeks now.
A bullish Bitcoin is unstoppable in terms of technicals, but due to the sheer size of these whales, there is a chance they can turn the tides in favor of bears once again.