This week Bitcoin broke its nine-week streak by closing in the red. With a positive return of 1.86% and a value at the close of the weekly candle of $29,445.92 according to TradingView. The start of June brings with it an increase in Bitcoin accumulation by the Whales.
An analysis exercise is necessary to consider the important transactions of the last week and to consider the different perspectives. The price of Bitcoin is not linked solely to the movements made by the Whales. It is also related to externalities and actions taken by government agencies around the world such as the United States Federal Reserve.
As always, we stress that this activity must be put into context to better inquire into the status not only of the whales, but of the market as a whole. Before continuing, we must clarify that all the data in this publication can be viewed on the Whale Alert page and Twitter. This is only a micro approximation to one of the factors that can influence the performance of BTC and the breakout of the downtrend, but it is not the only one.
Bitcoin Whales Weekly Activity Roundup: Whales Mobilize BTC
Currently, the predominant market trend is the mobilization between exchanges, we can see it in the graph and in the analysis below:
With a total of 117,174 Bitcoins moved during the last week, the whales moved 50,300 between exchanges, representing 42.92% of the weekly total.
The second predominant trend is accumulation. With 34,897 Bitcoins representing 29.78% of the total mobilized during the week, the whales increase the accumulation of Bitcoin by 177% compared to last week. At the same time they extract liquidity from the market.
Third, the last observation this week is the introduction of liquidity to the market through exchanges, representing 27.29% of the total mobilized during the week. Compared to last week, the introduction of liquidity was reduced by 24.87%.
How has Bitcoin performed?
At the time of writing this note, Bitcoin is trading at approximately $30,007.96, with an increase of 0.52% in the last 24 hours. During the last week, the price remained mostly above $29,000. This means that Bitcoin has found support between 28,000 and 32,000.
If Bitcoin manages to break the resistance of $32,000, the market trend will turn bullish and a price increase will begin. Becoming more attractive for miners to turn on their Bitcoin mining machines again.
It is important to remember that every 2016 blocks the Bitcoin mining difficulty is reset. Depending on the mining time of said blocks and also the hashrate of the network, if more miners connect, it will increase the difficulty in the next setting.
That is why during these situations, the Whales usually take the benefits of the market and extract their liquidity while the instability lasts.
On the other hand, Bitcoin correlates with other markets such as the S&P500, an index that groups the 500 largest companies by market capitalization. Over the last week, the S&P 500 shrank 1.63%. In addition, it presented a volatility between 80 and 90 points with respect to its minimum and maximum values of the week.
Despite the difficulties that Bitcoin is facing, this week's positive closing may represent the beginning of the market's change in trend. Bitcoin YTD has lost 36.29% of its value from the January monthly high of $46,217.5.
Similarly, we recommend strict monitoring of the behavior of the traditional market and the movements made by the Bitcoin Whales, since this gives us a partial idea of the state of the market.
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