New data from the behavior of whales suggests that these big investors are trying to prevent the price of Bitcoin from falling further. Transferring Bitcoin to major exchanges and opening trading positions below the price level can be a sign of the beginning of an uptrend.
To Report Cointelegraph, according to data from the Anchin cryptocurrency platform, large investors moved a large amount of their bitcoins to derivatives exchanges this month.
Whales forming a price floor
The whales responded well as Bitcoin fell to its lowest level since late June (early July).
Maartunn, a cryptocurrency analyst, on September 7 (16 September) in the QuickTick Market Updates section, noted a significant increase in the monthly average number of transactions between spot exchanges and derivative exchanges.
He believes that the whales are covering losses and have transferred their assets to exchanges with the aim of opening futures trading positions.
At the beginning of his analysis Martion wrote:
An increase in average inflows from spot exchanges to derivative exchanges (in the 30-day moving average) is a common sign of a price bottom (in the next few days to weeks). Guess what happened? This is happening.
This was happening before the last drop in the price of Bitcoin.
Earlier, derivatives exchanges saw an increase in Ethereum inflows ahead of the merger event, which is scheduled to take place next week. Martion explains that for this reason, Ethereum markets have been front running Bitcoin for almost three days now.
In this situation, whales are assumed to transfer their bits to derivatives exchanges to open long futures trading positions. They can form a local price floor by maintaining their trading position.
There is an important point to note. Ethereum has led the market for the past 80 days, largely due to merger hype. These promotions will end at the end of this month, which could have a significant impact on the cryptocurrency market. This effect also includes such analyses.
Major outflow of liquidity continues
Meanwhile, Willmap’s observations are focused on a possible sale of 5,000 bitcoins that have been inactive since before Christmas 2013 (Dec 91). These observations follow the suspicious movement of 5,000 Bitcoins after 9 years of hibernation in recent weeks.
In addition, Willmap highlighted the presence of several key support levels in this area, based on data based on the accumulation of large volumes of Bitcoin in the past. These painful support levels will be $19,000, $16,000, and $13,000 if Bitcoin price declines.