Advertisement
AD

Main navigation

BTC Whales Create Genius Plan to Curb Losses, Analyst Says

Advertisement
Sat, 15/10/2022 - 0:18
BTC Whales Create Genius Plan to Curb Losses, Analyst Says
Cover image via stock.adobe.com

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Read U.TODAY on
Google News

Bitcoin (BTC) whales are following a set pattern of trading to avoid losses during capitulation events that can be used as a powerful indicator of the market bottom according to an analyst at CryptoQuant

Advertisement

Writing in a 'Quicktake' on the crypto market analytics platform, the verified pseudonymous analyst 'eth_whalehunter' said that whales and funds tend to send their BTC to derivatives exchanges to set or cover long positions during capitalization events. 
 

Tracking these whales can give investors an insight into the market bottom. Particularly, the analyst states that tracking the Bitcoin Exchange Inflow/Outflow Mean indicator "is a reliable long-term bottom indicator." 

The levels of this indicator to watch out for are BTC Inflow means greater than 2.5 BTC and Outflow means greater than 10 BTC. These levels mark BTC local bottoms. However, he admonished traders to also use other on-chain indicators such as Net Unrealized Profit/Loss (NUPL), Puell Multiple, Market Value to Realized Value (MVRV), and BTC Hashrate, adding that investors can alternatively dollar cost average (DCA) into the market. 

Whale activity intensifying in the BTC market

The whale loss mitigation pattern is being identified amid increasing whale activity in the market. Whale investors have been noted to be contributing to the massive drop in the exchange reserves of BTC which has fallen to 8.7% of the total circulating supply. 

Similarly, a U.Today report identified a single whale that has allocated over $500 million to buying BTC since September, adding around 5,000 BTC during the period.

Advertisement
TopCryptoNewsinYourMailbox
TopCryptoNewsinYourMailbox
Advertisement

Latest Press Releases

Our social media
There's a lot to see there, too

Popular articles

Advertisement
AD