Analyzing The Titans: How Bitcoin Whales Influenced The Surge To $40,000
05 December 2023 - 3:00AM
NEWSBTC
Bitcoin and the crypto market continue to smash critical resistance
levels and hit new yearly highs. The cryptocurrency stands closer
to the $50,000 area as 2023 ends, and two major bullish catalyzers
stand on the horizon. Related Reading: Bitcoin Triumphs Over
$41,000, But Here’s What Could Prevent $50,000 As of this writing,
Bitcoin (BTC) trades at $41,800 with a 6% profit in the last 24
hours. In the previous seven days, BTC recorded an impressive 13%
rally as analysts and the crypto community celebrated the beginning
of a new bull cycle. Bitcoin Whales Behind $40,000 Rally, Are More
Profits In Store? Data provided by Ki Young Ju, CEO of crypto
analysis firm CryptoQuant, indicates that Bitcoin whales have
supported the current price action since August. At that time, the
cryptocurrency re-took the higher area at $20,000 and stood below
the critical resistance at $30,000. As Bitcoin trended to the
upside, whales took on “giga long positions” potentially in
preparation for the current rally. This risk-on behavior began more
discretely when BTC touched $16,000. Young Ju tied the market
activity to increased buying orders from US investors. On Coinbase,
the price of Bitcoin “skyrocketed” in October 2023. Investors in
the country have been buying more of the cryptocurrency in
preparation for the spot BTC Exchange Traded Fund (ETF) approval
and the Halving event. The latter of this event is the reduction of
the rewards for mining BTC. Furthermore, the CryptoQuant CEO
believes retail investors have yet to board the rally. As seen in
the chart below, BTC’s Realized Cap stood below 0.1, indicating
“low liquidity” from retail investors in the crypto market. Game Is
Not Over For BTC Additional data provided by Material Indicators
confirmed the increasing buying pressure from whales. Analyst Keith
Alan claimed that this behavior occurs to attract liquidity to the
market. Related Reading: Crypto Analyst Predicts Bitcoin 400% Surge
To $200,000, Here’s When Once liquidity, mostly from retail
investors, enters the market, whales can “distribute” their coins
or “dump” on retail to take profit from their position. Via his X
handle, the analyst stated the following regarding BTC’s potential
to continue the uptrend: (…) because we now have ~$86M in near
range #BTC bid liquidity, I’m considering buying this pullback
because it doesn’t appear the game is over yet. Cover image from
Unsplash,chart from Tradingview
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