Investors can track BTC whale transactions to derivatives exchanges to mark market bottoms
Bitcoin (BTC) whales are following a set pattern of trading to avoid losses during capitulation events which, according to one, can be used as a powerful indicator of market downside. Analyst at Cryptoquant,
Writing in a ‘Quicktake’ on the crypto market analytics platform, the verified pseudonymous analyst ‘eth_whalehunter’ said that whales and funds tend to send their BTC to derivatives exchanges to set or cover long positions during capitalization events.
Tracking these whales can give investors insight into the market’s bottom line. In particular, analysts say that tracking bitcoin exchange inflow/outflow The mean indicator is “a reliable long-term bottom indicator.”
The levels of this indicator to watch out for are BTC Inflow means greater than 2.5 BTC and Outflow means greater than 10 BTC. These levels mark BTC local bottoms. However, he admonished traders to also use other on-chain indicators such as Net Unrealized Profit/Loss (NUPL), Puell Multiple, Market Value to Realized Value (MVRV), and BTC Hashrate, adding that investors can alternatively dollar cost average (DCA) into the market.
Whale activity intensifying in BTC market
Whale loss mitigation patterns are being identified amid increasing whale activity in the market. whales have been investors noted To contribute to the massive drop in BTC’s exchange reserves which have fallen to 8.7% of the total circulating supply.
Similarly, a U.Today report identified a single whale that has allocated over $500 million to buying BTC since September, adding around 5,000 BTC during the period.
