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Greetings crypto enthusiasts!
In this article, we will analyze the term "Bitcoin whale" and consider how it affects the emotional and material part of the market.
The term "Bitcoin whale" itself refers to an individual or legal entity, it has more than 10 thousand Bitcoins on its account, and its volume can affect the price rate. According to Bloomberg research, almost 60% of the total BTC volume is controlled by less than 1% of wallets.
Who are Bitcoin Whales? It's a mystery for us, but it's worth remembering that in the past you could buy pizza for 10,000 BTC, which the famous Laszlo Heinitz did in 2010. Thus, crypto enthusiasts in the construction of the Bitcoin system could put together a considerable part of the digital asset, which is now the foundation of the entire structure, where these very whales, which control the rate of the first cryptocurrency, are at the head.
Tracking whale transactions is carried out by monitoring BTC wallets, for example, Bitinfocharts provides a list of the 100 most impressive crypto accounts in terms of size. Without proper dexterity, you can get confused in the movement of capital, but programmed bots will come to the rescue, which can separate exchange accounts from whales. Such a bot can be easily found both on Telegram and on Twitter, which will greatly simplify the analysis.
Why is capital flow analyzed? The answer lies in the fact that whale wallets, which for a long time stood motionless in one place, with subsequent movement signal upcoming changes in the market itself. That is, the market, or rather the BTC rate can change the beat that followed earlier. At the same time, the flow of capital may mean the entry of institutional investors into the market.
One of the last manipulations with a large volume of BTC occurred not so long ago. On June 27, the bot recorded a span of 101,857 BTC ($ 943 million), the transaction was split into two previously unknown wallets. The bot recorded another operation on July 6, which span to 16,662 BTC ($ 154 million), and the transaction was also broken down at anonymous addresses.
This happens while Bitcoin has been standing in the side corridor of $ 8,500 / $ 10,000 for more than two months, which could theoretically signal an early cardinal change in market ticks.
Before moving on to thorough market analysis, we focus on the two whale transactions described above. So, a huge amount of capital was taxed with a minimum transfer fee of 101,857 BTC (commission $ 0.49), and 16,662 BTC (commission $ 0.73), which once again confirms how economical transfers are in the Bitcoin network compared to the traditional banking system.
Current development and prospects
As early as 70 days in a row, the quotes of the first cryptocurrency invariably follow in the range of $ 8,500 / $ 10,000, showing an average daily activity in the region of $ 400. Such activity signals a peculiar stage of accumulation, inside of which there are definitely large players who control this process. Based on the fact that no one can always stand in one place, such a protracted flat will soon lead to impulsive activity. Such a "boom" of activity can come at any moment in time, and we should be prepared for it. As we have previously identified levels of $ 8,300 / $ 10,500, in the area of which there are concentrated clusters of stop orders [StopLoss], touching them, an avalanche-like reaction can occur that will provoke a breakdown of the set boundaries.
Based on the above information, the best trading tactic will be to work on the basis of local operations, which will be set outside the range of $ 8,300 / $ 10,500 in the form of pending orders or with market entry with proper consolidation outside the specified coordinates.
The general background of the cryptocurrency market
Analyzing the total market capitalization of the crypto industry, you can see that the trading volumes following the BTC rate move in a conditional side channel, where the current hour Total market is $ 272 billion.
If we consider the volume chart in general terms, then it can be seen that the amplitude limits are $ 245 and $ 284 billion. The maximum of the current year is $ 307 billion, the subsequent resistance is in the region of the maximum of 2019 $ 362 billion. Regarding the support levels, here it is worth taking into account the numbers: $ 245 billion, $ 234 billion and $ 132 billion
The cryptocurrency market index of emotions (aka fear and euphoria) is 44 points. It is worth considering that the mood indicator is stably above the level of 40 points, which indicates the stabilization of the emotional background of the market. Abrupt changes in the index plan will occur at the moment when the BTC price breaks the main borders of $ 8,300 / $ 10,500.
Indicator analysis
Analyzing a different sector of timeframes (TF), it can be seen that relative to four-hour and daily periods there is a variable buy and sell signal due to BTC price fluctuations within the flat formation of $ 8,500 / $ 10,000. A weekly period, as before, signals a buy due to the rapid recovery process.
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