According to data compiled by Santiment, “whales,” or investors with 1,000 to 10,000 BTC, have added 84,897 BTC in the last five weeks. Coinmarketcap reports that one Bitcoin is now worth around $27,292 making this sum worth more than $2.2 billion at the current exchange rate.
Is This a Good Sign for Bitcoin?
Despite the whales’ best efforts they have not generated enough purchasing pressure to increase Bitcoin’s price. In contrast the whole May result shows a devaluation of the cryptocurrency of more than 10%.
Even yet the accumulation by whales may be seen as a positive indicator since it shows that these investors view the present price level as offering a strong potential for profit in the medium to long term. Big price increases have often occurred just before periods of accumulation like the present one. Santiment itself notes that following a similar stockpiling by whales in January of this year, Bitcoin grew in value by over 35%.
In this approach, the asset has a good probability of again surpassing the $30,000 level this year, and if the whales stay positive and grow their holdings in Bitcoin, it might reach even greater heights.
Experts Foresee a New Upward Trend
This accumulation by whales is only one of several indicators that Bitcoin is about to start a new bullish trend. A major on-chain indicator is in a position identical to that observed at the beginning of the past two bull runs the asset has seen, as pointed out by analytics teams.
All of the indices of market mood are heading in the same way. Since peaking at the greed level last month, the Crypto Fear & Greed Index which gauges the emotion of investors and traders towards Bitcoin, has been falling.
The indicator is resting on the 50 line, indicating that there is no clear bullish or bearish trend for the coin at this moment.
It’s important to keep in mind that according to the psychology of the market, whales earn money by liquidating their holdings and profiting from the increased liquidity caused by the greed of other users. However this subset of investors actively seeks out selling opportunities during times of widespread panic.
In conclusion it is more advantageous to follow the movements of the whales than the rest of the market particularly in operations that concentrate on the long term. Therefore people who want Bitcoin to resume reaching new highs may find a reason for optimism during the present accumulation phase.
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