A whale of Bitcoin (BTC), A single investor who owns a large amount of BTC made a profit after two years. Whalemap data suggests that the whale bought nearly 9,000 BTC in the third quarter of 2018.
A pseudonymous trader named “Byzantine General” who shared the data, said::
“This whale is a legend. Do you see that big bubble of around 6,000 in 2018? That’s almost 9k BTC that has accumulated there. After 2 years and 2 major surrender events, he finally took a profit. “
The whale held on to BTC for nearly 22 months in two main phases of surrender. Bitcoin fell to levels below $ 4,000 twice, first in January 2019 and second in March 2020. The investor waited for both periods and eventually sold at around $ 12,000.
Bitcoin number of a whale. Source: Byzantine general, Whale map
What does a Bitcoin whale’s retained earnings suggest?
On Aug. 16, Cointelegraph reported that there were large groups of whales ranging from $ 12,000 to $ 14,000. At the $ 12,000 level, many whales are profitable or balanced, which could potentially incentivize the whales to sell.
It is unclear if it shows the whales are wary that Bitcoin has reached a local peak. Whales follow liquidity due to the size of their characteristics. If they think there is enough liquidity to sell, possibly due to increased retail activity, they will likely sell.
So a whale sell-off doesn’t necessarily show that Bitcoin has peaked. It could be argued that this increases the chances of consolidation in the short term. But By the time BTC falls below major support levels, it is premature to assume that a local spike has formed. In addition, it is difficult to estimate how much of the 9,000 BTC the whale sold.
One reason why some whales appear to be benefiting at current levels could be Bitcoin’s relatively high spot volume. According to another pseudonymous trader known as Bitcoin Jack, The market remains “clumsy” driven by the spot market. He said::
“For the time being, the market is uncomfortably driven by the spot market. The chain market is still relatively high. The price increase is therefore imminent again; The direction is unclear, but the low derivatives versus the spot market and the spot exchange versus chain domination suggest that we haven’t seen an irrational cap. “
When the market is heavily driven by the derivatives market, whales have less liquidity to look for and smaller withdrawals can lead to large price movements.
What short term traders expect
In the short term, traders are left with no consensus on the sentiment regarding Bitcoin. Michael van de Poppe, a full-time trader on the Amsterdam Stock Exchange and analyst at Cointelegraph Markets, says BTC could fall to just $ 10,000 if it loses the $ 11,450 level. He said::
“It’s pretty easy here, with $ 11,600 being rejected. If we hold the $ 11,450-11,500 range, we will have a breakout towards $ 12,000 in the next week. If I miss the green zone, I’ll aim for $ 10,700 or even $ 10,000. “
After almost three times the price increase A short-term consolidation phase could strengthen Bitcoin’s long-term momentum.