Bitcoin whales often trend the crypto market with their activities, marking the tops and bottoms. According to data from Santiment, the investor class may be doing just that right now.
Bitcoin whales indicate a possible price trend reversal
Crypto market behavior analysis platform Santiment noted that Bitcoin is currently seeing a stable supply of large-volume transactions. From Monday to Friday, nearly 4,000 transactions worth over $1 million are processed by Bitcoin whales. While the number of transactions slows a bit on the weekends, Santiment mentions that the trend could be a price jump that will bring Bitcoin back from this month’s price drop.
The graph shared by Santiment, whose data we follow closely as Cryptokoin.com, also supports the argument. The chart shows that a Bitcoin whale transaction spike in January saw the price bottom out. Similarly, another whale transaction spike marks the local price peak in March. All in all, the data shows that increased whale activity is highly bullish for the market. Meanwhile, from the chain data, it was observed that some whales were constantly buying BTC regardless of price.
🐳 #Bitcoin is seeing a continued steady supply of ~4,000 whale transactions exceeding $1M+ Monday through Friday, with mild slowdowns on weekends. Large increases are what we are looking out for to foreshadow a price bounce after April's retrace. 👀 https://t.co/GVhqxEWqf1 pic.twitter.com/uLQxu1C3RK
— Santiment (@santimentfeed) April 13, 2022
BTC price continues to fight macroeconomic pressures
A market analyst, Credible Crypto’ According to Bitfinex, Bitcoin trading on the crypto exchange is aggressively buying whales. Similarly, another whale of unknown origin has been buying roughly $1 million worth of BTC every day since the end of February. Meanwhile, the Luna Foundation Guard (LFG) added nearly $100 million worth of Bitcoin to its holdings to rank among the top 20 BTC whales.
Despite increased whale activity, the coin has dropped below $40,000 again. According to market analysts, the drop in Bitcoin price could be a result of growing concerns about inflation. Oanda’s senior analyst, Edward Moya, states that rising rates have led to feelings of risk-off in the market, and that’s where Bitcoin struggles. According to a Bloomberg analysis, a growing correlation was also observed between BTC and the stock market, which played a role in the pullback of Bitcoin’s price. Accordingly, it was revealed that Bitcoin’s relationship with the stock market is at an all-time high.
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