• October 22, 2020

Bitcoin whale expansion is macro bullish, but is it enough to stop another large sell off?

Data suggests that Big buyers – sometimes referred to as”smart money” – have been incomplete Bitcoin accumulation mode within the last few months, with the amount of proverbial”whales” hitting multi-year highs only in the past week.

From a macro standpoint, This data metric is offering substantial hope to investors, as it indicates that among those benchmark cryptocurrency’s most important investor groups is optimistic that the crypto will eventually find an upside.

However, bullish This might be in the long term; it still does not negate the fact that the crypto has shown signs of technical weakness during the last couple of months.
Bitcoin whale count rockets to multi-year highs amidst market-wide retrieval

The decline was seen on March 12th — a day is currently known by investors as”Black Thursday” — rocked the crypto markets, resulting in widespread capitulation among retail investors while also flushing out the huge bulk of the crypto’s margin dealers.

This decline was not enough to rock the center of the cryptocurrency’s investor composition, as so”whales” started gathering Bitcoin at a fast pace in the time immediately after this event.

This phenomenon is clearly exemplified by data provided earlier this month from blockchain evaluation platform Glassnode, demonstrating that the amount of Bitcoin whales struck 2-year highs just over a week ago.

“The Number of BTC whales keeps growing, hitting 2-year highs — the last time we saw that many during an accumulation phase were in 2016. This becomes interesting when we compare it with the past Bitcoin halving.”

Image Courtesy of Glassnode

Will this be sufficient to give Bitcoin a much-needed near-term boost?

Despite there is a historical correlation between whales amassing and Bitcoin seeing noteworthy cost rallies, it’s still a strong chance that BTC sees further downside in the months and weeks ahead before beginning a sustainable upward movement.

Regarding the data mentioned above, crypto analyst Cole Garner told his 15k followers a climbing whale count is bullish from the”big picture” but may be insufficient to prevent BTC from crossing its lows between $4,800 and $5,600.

“It is bullish *big picture* — but a sweep of the lows could come. If we leg, I am a purchaser from $5600 down to $4800.”

Image Courtesy of Cole Garner

Since sharp price declines do appear to be followed by increased whale Purchasing activity, it’s a chance that this next potential Decrease will ultimately boost Bitcoin’s long-term prognosis due to Sparking even higher rates of buildup.

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