One analyst demonstrates that prior BTC price bottoms have followed a regular procedure of avoiding fallout. From positions by “putting in a local bottom.” As recent data demonstrates “typical” bottom behaviour, Bitcoin whales are betting on a rebound. According to the on-chain analytics portal CryptoQuant, large-volume speculators are dumping coins. Into derivatives exchanges in droves this month.
Whales protect their positions by “forming a local bottom”
Whales were behaving nicely when BTC/USD reached its lowest levels since the end of June.
CryptoQuant researcher Maartunn saw a noticeable increase in the monthly average number of transactions performed. Especially between spot exchanges. And derivatives platforms in one of its Quicktake market reports published on September 7.
Bitcoin whales, according to Maartunn, are transferring money to utilize in futures bets and hedging their losses.
“A spike on Exchanges to Derivative Exchanges Flow Mean is typical for local bottoms” (30d MA). Guess what, that’s taking place right now,” he said.
Before the most recent decline in the price of BTC, the process was already in motion.
In the lead-up to the Merge event scheduled for next week. Futures markets for Ether (ETH) were already observing increasing inflows.
As a result, according to Maartunn, ETH markets are currently leading Bitcoin by almost three months.
“The hypothesis in this thesis is that Bitcoin whales will deposit on derivatives exchanges to open futures (long) contracts. And be able to safeguard their positions. By forming a local bottom,” the update concluded:
“Important thing to notice: Ethereum has been leading the market for 80 days, mainly driven by ‘The Merge’-hype. That hype will come to an end later this month, which could have a significant impact on the crypto market. This could heavily involve observations like this.”
Major cash-outs continue
A prospective sale of 5,000 BTC, which had previously lain dormant.
Since Christmas 2013, was the subject of independent observations from the monitoring tool Whalemap.
The action comes in response to recent suspicions regarding various tranches of 5,000 BTC. That travels across the network after nine years of hibernation.
Additionally, Whalemap reaffirmed important on-chain support levels. It has
established as a result of previous large-volume accumulation. These are represented by the amounts of $19,000, $16,000, and $13,000.
As the June lows resurfaced, the Whalemap crew said, “Prime time for $BTC.”
The author’s thoughts and opinions alone, not necessarily those of Cointelegraph.com, are conveyed in this article. Every investment and trading action carries risk; therefore, before making a choice, you should do your own study.
Also read: In Lebanon, Recently A Bitcoin-Themed Wedding Took Place
