Well, if anything is responsible for the current price surge in Bitcoin (BTC), it’s the war among the Bitcoin whales that took its price above $40,000. BTC has surged over 34% since the beginning of 2021 so far and if we look at the buying pattern, whales have been buying at different BTC price points over the last week.
Over the last three months, the graph for BTC-USDT spot orders has escalated very sharply. On Friday, January 8, the BTC trading volume across exchanges went all the way close to $100 billion. Twitter handle Material Scientist shows an interesting graph on how different BTC whales show different behavior over the last year.
As we can see in the graph, BTC “mega-whales” holding in the range between $1M-$10M have been aggressive purchasing at every BTC price rise over the last year. As said, the mega whales have added over 30% of the total net volume over the last week.
On the other hand, the smaller whales are losing their supplies to the big fishes. But if we see the 48-hour Bitcoin (BTC) price chart, even the “mega whales” have resorted to some profit booking above $40,000 levels. However, the dips to under $37K on Friday have been quickly absorbed. At press time, Bitcoin (BTC) is again trading at $39,200 levels.
Coinbase Outflows Critical In Holding BTC Price Higher
Analyst Joseph Young mentions that while whales are resorting to profit booking above $40K, the U.S. investors at keeping the BTC price higher. Most of these purchases are happening on Coinbase. He writes:
“It’s the same old story. Buyers in the U.S., mostly Coinbase (due to massive volume, premium, outflows), are carrying Bitcoin to new highs. Whales taking profit as soon as BTC hits a new high. So it’s important even more so to observe Coinbase outflows and volume”.
Another crypto analyst Ki-Young Ju also mentions that the OTC deals happening on Coinbase over the last week are leading to massive outflows. He hints that institutions have been moving BTC in large numbers in cold storage and they aren’t yet interested to take profits on around 20% price surges.
Let us know in the comment below what do you think about future BTC price action. Will BTC continues its journey to the north, will it consolidate a while at $40K, or is a correction on the charts ahead? Whatever it is, the whales have made this rally even more interesting.
Start mining bitcoin now
Start trading bitcoin now