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Bitcoin ( BTC ) has grown modestly among demand crypto users since it fell below $ 9,500 on May 20.

At the Last Price Drop, Whales Collected $ 108 Million Bitcoin!

At the Last Price Drop, Whales Collected $ 108 Million Bitcoin!

The cryptocurrency analysis platform Santiment has released data indicating an increase in Bitcoin accumulation in more than 100 BTC wallets. The data collector noted that “whales” add another 12,000 BTC to their wallets, which is equivalent to about $ 108 million at the current exchange rate.

Bitcoin whales have accumulated more tokens since the end of April 2020 | Source: Santiment

Whales generally represent people whose values ​​are more than a million cryptocurrencies. Observers often check the whales’ wallets to measure the market’s short-term movements. If the number of Bitcoins held in a whale’s wallet is increasing, the upward trend may be seen at a later stage. If the amount falls, then there may be a bear market.

Whale psychology

Santiment said that those with large amounts of Bitcoin recently showed daily trader features. Their address shows that “the tendency to accumulate in the bottom and drain their amounts slightly before short-term high levels occur”.

This behavior was seen after 12 March “Black Thursday”, when the price of Bitcoin fell from $ 7.969 to $ 4.346. Whales had the opportunity to purchase Bitcoin at cheaper rates, as the price eventually recorded the lowest level of the year at $ 3,800.

As a result, the balances in BTC wallets increased another $ 500 million. As the price of bitcoin rose, this fluctuation followed a systematic and more careful downtrend. This showed that the whales that hold more than 100 BTC sell some of what they have when the price reaches a local high level.

The recovery of BTC / USD is currently limited to the long-term resistance line that coincides with $ 10,000 | Source: TradingView.com

BTC amounts in wallets began to rise on May 11, ahead of Bitcoin halving. After the price tested the $ 10,000 resistance point, the quantities dropped once again. This showed that the whales did not want to go above that level.

However, when BTC fell below $ 9,500, accumulation sensitivity was triggered.

Bitcoin recovery

A $ 108 million purchase order is not big enough to correct Bitcoin’s bearish trend. However, it shows that whales take some risks to maximize their cash-based profits, especially in the worsening financial crisis.

This could raise the price of Bitcoin in the short term, but as long as the demand for cash remains higher, it has no basis to support a full rally. Meanwhile, as the rewards in the block chains halved, miners started selling BTC awards.

This can contribute to the prevailing downside correction feeling.

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