Editor's Note: This article comes fromChain reference (ID: lianneican), Author: Internal Reference Jun, reprinted by Odaily with authorization.
Editor's Note: This article comes from
Chain reference (ID: lianneican)
, Author: Internal Reference Jun, reprinted by Odaily with authorization.
Beginning October 22, crypto whales have been selling Bitcoin throughout the weekend. The dominant cryptocurrency continued to rally despite the increasing number of sellers in the market.
In crypto, the term "whale" refers to high-net-worth investors who hold large amounts of bitcoin. Because of their sheer size, whales often have a large impact on the market.
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Whales' Forex Deposits Rise
According to data from on-chain analytics firm CryptoQuant, whales began depositing money with exchanges on Oct. 22.
Whale investors tend to keep their bitcoins in cold wallets rather than on exchanges. The reason is because cold wallets are offline wallets that do not connect to the internet. This eliminates the possibility of a security breach or hacking attempt.
So when whales start depositing bitcoins on an exchange, it usually means an intention to sell bitcoins.
CryptoQuant CEO Ki Young-Ju said in an exclusive interview that he expects prices to drop slightly due to increasing selling pressure from whales.
On Oct. 25, the price of BTC dropped nearly 3 percent in less than an hour, two days after Ki pointed out the rising number of bitcoin deposits from whales.
Since then, the bitcoin price has gradually recovered, climbing steadily again to the $13,300 resistance level.
Technical analysts expect this resistance range to fall back to $13,000 to $13,500, as this is an area of interest for sellers.
Researchers at Whalemap, which tracks the activity of bitcoin whales, also said that a critical chain indicator suggested that a profit-taking phase may be on the horizon.
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Bitcoin Moving Profit and Loss (MPL) indicator. Source: WHALEMAP.IO
“Moving Profit and Loss (MPL) facilitates profit-taking when the market is overheated when prices are in unexplored territory. We seem to have reached the top of the trendline now,” they said.
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The typical reaction of Bitcoin price to selling pressure from whales is to pull back quickly. Although the BTC price fell, it recovered from the minor pullback immediately.
There are two key reasons why Bitcoin could continue to rise despite rising FX deposits from whales.
Second, institutional demand levels have increased significantly following various major events. Especially after the investments of Square, MicroStrategy and Stone Ridge in BTC, the demand for the dominant cryptocurrency increased significantly.
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Bitcoin weekly chart. Source: TRADINGVIEW.COM
Bitcoin’s weekly chart also shows a clear breakout of a three-year range. A confluence of technical, macro, and fundamental catalysts could lead to stronger momentum for BTC.
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Bitcoin market continues to be bullish
Gemini Tyler and Cameron Winklevoss, founders of the cryptocurrency twins, reaffirmed their bullish stance, saying that Bitcoin will eventually hit $500,000.
On Peter McCormack’s podcast, Tyler commented that it’s only a matter of time before the price of Bitcoin will inevitably approach the $500,000 mark.
“The question on our minds is not that it will get to $500,000, but how quickly it will go,” he said.
His twin added that healthy forecasts are actually conservative, and the value of tokens may exceed their optimistic estimates.
Cameron: "I think $500,000 in Bitcoin is actually pretty conservative, the game hasn't even really started yet."
Cameron cites MicroStrategy as an example of an institutional investor that he advises other public companies and other investors to act on both as a hedge against a centralized economy and as an example of digital means to cash in.
