Investors can trace BTC whale trades to derivatives exchanges to mark market bottoms
Bitcoin (BTC) whales follow a series of trading patterns to avoid losses during surrender events that can be used as strong indicators of market bottoms. Analyst at CryptoQuant.
On cryptocurrency market analysis platform ‘Quick Take’, verified pseudonymous analyst ‘eth_whalehunter’ said that whales and funds send BTC to derivatives exchanges to open or cover long positions during capitalization events. said to have a tendency to
Strong bear market bottom indicator – $BTC Average forex inflow
“Whales and funds tend to send BTC to derivatives exchanges to set up or cover long positions.”
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— CryptoQuant.com (@cryptoquant_com) October 14, 2022
Tracking these whales allows investors to know the bottom of the market. In particular, analysts Bitcoin exchange inflow/outflow The average indicator is “a reliable long-term bottom indicator.”
The levels of this indicator to watch out for mean BTC Inflow above 2.5 BTC and Outflow above 10 BTC. These levels mark BTC’s local bottoms. However, he advises traders to also use other on-chain indicators such as Net Unrealized Gain/Loss (NUPL), Puer Multiples, Market Value to Realized Value (MVRV), and BTC Hashrate. I added that you can use dollar cost averaging (DCA) instead. ) to the market.
Whale activity intensifies in the BTC market
Whale loss mitigation patterns are being identified as whale activity increases in the market.whale investors I got it It contributed to a significant decline in BTC’s foreign exchange reserves, dropping to 8.7% of the total circulating supply.
Similarly, U.Today report Since September, we have identified one whale that has allocated over $500 million in BTC purchases, adding around 5,000 BTC over the period.