The big holders of bitcoin (quotation BTC) have the power to change the trend of the bitcoin market with opportunistic buying or selling, according to a recent report by Whalemap. Additionally, that influence has grown in recent days with a notable increase in entities with more than 1.000 BTC and those accumulating more than 10.000 BTC, also known as whales, according to data from Glassnode.
The movements of large portfolios, both buying and selling, can lead to an immediate price movement. For this reason, traders who adopt a short-term investment strategy can find useful indicators by following in the footsteps of whales, according to an analysis reported on Twitter.
Tactics used by whales include starting an accumulation of BTC during a local low and selling when highs occur in a selected short period. In the chart below from @CredibleCrypto, the analyst refers to a whale operating on Binance, whose movements in the directions it controls have marked the highs and lows of the BTC price in the past two weeks.
The interventions on the market of that specific whale, followed by @CredibleCrypto, occurred with selected purchases at the end of May and in this first week of June; exactly in the areas marked by the green rectangles on the graph.
Sales (orange rectangles), on the other hand, occurred when the price approached $ 32.000. That is when there was a reputation, particularly after the rally on May 30 and the recent rally on Monday June 6.
The price reacted to the upside after the buy and to the downside after the sale, as @CredibleCrypto points out, referring to the aforementioned whale purchases:
I've seen it come and go. Accumulate at the lows and lock the price at the highs. It recently bought 2.000 BTC ($ 60 million) at local lows of $ 29.200 before the pumping we are witnessing - @CredibleCrypto on Twitter.
Following the bitcoin whales
An element that supports this thesis is represented by a graph from the analysis company Whalemap. It uses the concept of "bubble of the whales", which is associated with a high activity of these large keepers. Specifically, Whalemap identifies an address or group of addresses that hold more than 1.000 BTC and are controlled by a single entity, and documents the BTC sales made by that entity.
With this data, sales are marked on the price chart with a green circle proportional to the volume of BTC sold. The graph shows that sales generally lead to price drops in a very short period of time, although some drops may be more marked. It could be inferred that the latter case occurs if there are multiple whales using the same strategy or if there are also macroeconomic factors affecting the market.
A sufficiently high volume of BTC sold can be associated with the creation of a particular resistance level, as seen in the chart. A succession of large sell-offs can lead to a drop in the resistance level, as seen in the previous chart. Whalemap suggests the current resistance level is US $ 30.619, following a series of sell-offs by a whale in recent days.
Furthermore, holders of more than 1.000 BTC are on the rise, as can be seen from the growth of Bitcoin addresses with more than 1.000 BTC, in the data from Glassnode. They went from 2.200 on 25 May to 2.230 on Tuesday 7 June. Over the same period, megabalas with more than 10.000 BTC also grew, from 96 to 100.
Although the number of holders at these levels is small, it is worth considering that the members of this exclusive club have amassed at least $ 300 million at the current level of the BTC price. According to the price index, the price of BTC is 30.239 at the time of writing.