Bitcoin (BTC) analysts point to short-term volatility in the market after the whales exhibited unprecedented behavior.
New ecosystem data shows that whales are not only very active in the market, but also carry record amounts of BTC.
Whale activity surpasses Bitcoin’s all-time high
Although BTC’s price action remains in the narrow range of around $ 40,000, high-volume Bitcoin investors are still trading.
In recent weeks, whales have transferred more cryptocurrencies to the network than ever. Even at an all-time high of $ 60,000 and up, there were not that many transactions.
The total transaction amount of $ 10 million and more exceeded $ 10 billion.
Whales have been moving a record amount of #Bitcoin last two weeks.
Total transfer volume of over $ 10 million transactions is still on ATH lately.
It’s even higher than when the price was $ 55-60k. pic.twitter.com/FXvcCPPl57
– Lex Moskovski (@mskvsk) September 28, 2021
The analysis reveals that different whales react differently to recent price movements.
Material indicators to the data the “small” whales are selling, while the whales with the highest volume of trade, on the contrary, are increasing their positions.
Alongside the graph of BTC / USD trading levels, the researchers said: “Whales have sold BTC, mega whales have bought, and other whales have been placing orders and waiting to buy.”
“If you are trying to understand these tricks of the whales, look at the weak liquidity that they are trying to play in the opposite direction.”
This relative lack of resistance between the current spot price levels of $ 42,000 to $ 46,500 came true when BTC / USD repeatedly rejected $ 44,000.
Expect “fast and volatile” Bitcoin below $ 40,000
Meanwhile, more whale data warns that price volatility could come.
Related: Europe number one in cryptocurrency transactions
The “stock market whale rate” indicator, which tracks the size of the top 10 stock market entries, is approaching levels that have led to volatile price movements in the past.
“Normally we would view this as a short-term sell-off, but we need to make sure the price stays above 40k as we are in crucial areas,” online analytics firm CryptoQuant said in a statement Tuesday.
“Price action below 40,000 can be fast and volatile.”
As Cointelegraph reported, expectations are that the BTC / USD pair will bottom out at $ 36,000 if it loses the $ 40,000 support.