HOME CATEGORIES WRITE AND EARN 🔍
CATEGORIES WRITE AND EARN MORE

CRYPTO NEWS

Your favorite crypto news blog

Market Data Reveals Whales Bought The Bitcoin Dip While Retail Traders Sold Off

Bitcoin 2021/01/13 14:15 by Adrian Klent
Bitcoin Price Correction Dips Down Amidst Bullish Pressures

The major Bitcoin sell-off that took the market by storm had been making rounds in the cryptocurrency community this week. Recall that one analyst had hinted before the event that the arrival of Asian bulls could shake up the market. Thus, a price dump was imminent. New data has now revealed that there was a major sell-off from retail traders, which has now resulted in the upsurge of accounts holding more than 1,000 Bitcoins. 

The data below shows a massive difference in those numbers within a very short period of time. On the 4th, we see that there were less than 2100 whales. One week later and we’re seeing the numbers at a new all-time high. 

The price dump caused panic among retail traders who were quick to sell their Bitcoins in order to curb market risks, while whales conveniently tapped into the dip and swooped in some more Bitcoins.

Whale accumulation is a long-term investment strategy that has profited investors over the years. Unlike the retailers, whales do not intend to sell their Bitcoin immediately, because unlike day traders, losses do not threaten their asset holdings. 

Clearly, 2021 whales are up and active, but older whales are not asleep either. As revealed by the On-chain analytics platform Glassnode, whales from 3 years ago are still active in 2017 and do not intend to cash out anytime soon. 

Glassnode’s CTO who disclosed the data via Twitter is quoted below, saying ;

“Were Bitcoin investors that bought the 2017 top desperately waiting for new ATHs to cash out and leave?

I don’t think so.

BTC supply last active 3+ years (includes the 2017 top) is at 35%, still rising, and showing no signs of slowing down.”

Although whales are present, institutional demand is yet to pick up. Apparently, institutions are yet to fully resume from the holiday breaks, hence the stagnation in the inflow of Bitcoin into Trust Funds accounts. Once institutional activities resume, analyst Joseph Young, observes that a bullish rally is in sight. 

Young asserts ;

“The Grayscale Bitcoin Trust has not reported additional inflows since Christmas (Dec. 25, 2020) due to the holiday season / year end.

When BTC inflows start coming in, indicating institutional demand, that’s when Bitcoin could start to rally upwards again. Worth observing.”

Meanwhile, Bitcoin is repositioning for a comeback to $35,000. At press time, a bear trend hinders the big bull at $34,427, but a correction is generally being forecasted by analysts.

Bitcoin Address Activity Still Growing At Historic Rates Despite Recent PullbackBTCUSD Chart By TradingView

0 Like(s)



You should also read...

Bitcoin 26/04/20 20:57 by Jeff Fawkes
On-Chain Metrics Reveal Bitcoin Investors Are Buying The Dip In Anticipation For Halving Effect
The Glassnode analyst Matthias Bachmann claims that on-chain metrics show investors’ positive expectations. The third upcoming Bitcoin halving has attracted massive attention, with concerns abo...
Read More
Bitcoin 14/05/20 17:03 by Samuel Wan
Wall Street is Coming to Bitcoin: Here’s Why Crypto’s Institutional Market Just Saw a Massive Turning Point
Things ramped up a gear today as Bitcoin derivatives platform, Deribit announced full integration of the ClearLoop custody and settlement solution for institutions. ClearLoop is the brainchild of Lond...
Read More
Bitcoin 09/06/20 18:00 by Tony Spilotro
Bullish For Crypto: CME Bitcoin Futures Open Interest Growth On Pace To Rival BitMEX
Bitcoin is maturing as an asset. After years of hope from the crypto community, institutional investors are finally taking notice. Adding credence to this growing trend, CME Bitcoin Futures’ ope...
Read More
Bitcoin 08/11/20 21:00 by Cole Petersen
Whales Flip Long on Bitcoin While Retail Remains Sidelined; A Bullish Sign?
Bitcoin has been flashing signs of strength today as it rebounds from an intense selloff seen yesterday. Its reaction to this dip proves that this is a firm bull market, as each bout of selling pressu...
Read More
Bitcoin 11/12/20 20:29 by Adrian Klent
This Bitcoin exchange inflow metric is signaling a major long-term bullish rally
If you thought the Bitcoin wave was over, the new metrics might require you to think again. The $19850 price peak has not been retested, but in the long term, new metrics are suggestive of a promisin...
Read More