A whale of Bitcoin (BTC) – an individual investor holding a large amount of BTC – took profit after two years. Whalemap data suggest the whale bought nearly 9,000 BTC in the third quarter of 2018.
A pseudonymous trader, known as ‘Byzantine general’, who shared the data, sei:
‘This whale is a legend. See that big bubble around 6k in 2018? That’s almost 9k BTC that was collected there. He eventually took profit, after 2 years and 2 major capitulation years. ”
The whale held fast for the BTC for almost 22 months, through two major fascination phases. Bitcoin dropped twice to sub- $ 4000 level, first in January 2019 and second in March 2020. The investor waited through both periods, and eventually sold at around $ 12,000.
Number of Bitcoin held by a whale. Source: Byzantine general, Whalemap
What suggests a profit on Bitcoin whale?
On August 16, Cointelegraph reported that large whale clusters were present in the $ 12,000 to $ 14,000 range. At the $ 12,000 level, many whales are at a profit as on breakeven, which is likely to give whales an incentive to sell.
Whether it shows whales are cautious that Bitcoin has hit a local peak remains unclear. Whales follow liquidity due to the sheer size of their businesses. If they feel there is enough liquidity to sell, possibly as a result of increasing retail activity, then they are likely to sell.
Therefore, the sale of a whale does not necessarily show that Bitcoin has a peak. One could argue that it increases the chances of consolidation in the short term. But until BTC falls below key support levels, it is too early to suggest that a local peak has been formed. Also, it is difficult to estimate how much of the 9,000 BTC the whale sold.
One reason some whales are profiting at current levels could be the relatively high spot volume of Bitcoin. According to another nickname trader, known as Bitcoin Jack, the market remains “awkward” driven by the spot market. Hy sei:
“First of all, the market remains incredibly driven. Market remains relatively high dominance to chain Price expansion is therefore again difficult – direction unclear, but low derivatives vs spot and spot exchange vs onchain dominance indicate that we have not seen an irrational peak. “
If the market is heavily driven by the derivatives market, whales have less liquidity to seek, and small withdrawals could cause large price movements.
What traders expect in the full term
In the short term, traders remain mixed about the sentiment surrounding Bitcoin. Michael van de Poppe, a full-time trader on the Amsterdam Stock Exchange and analyst at Cointelegraph Markets, says BTC could drop as low as $ 10,000 if it loses $ 11,450. Hy sei:
“It’s pretty easy to go here, because there’s a $ 11,600 discount. If we keep the $ 11,450-11,500 range, I think we’ll have a breakout to $ 12,000 next week. Lose the green zone and I focus on $ 10,700 or even $ 10,000. ”
After a nearly three-fold price increase, a full-term consolidation phase could strengthen Bitcoin’s momentum in the longer term.
