Bitcoin whales often set the trend of the crypto market with their activity, marking tops and bottoms. The class of investors may be doing just that at the moment according to data from Santiment.
Bitcoin whales signaling a likely price trend reversal
The crypto market behavior analysis platform has noted that at the moment, Bitcoin is seeing a steady supply of large volume transactions. Approximately 4000 transactions that exceed $1 million in value are being carried out by Bitcoin whales from Monday through Friday.
While the number of transactions slows down slightly on weekends, the trend speaks of a price bounce that will bring Bitcoin back up from its price slump this month Santiment said.
🐳 #Bitcoin is seeing a continued steady supply of ~4,000 whale transactions exceeding $1M+ Monday through Friday, with mild slowdowns on weekends. Large increases are what we are looking out for to foreshadow a price bounce after April’s retrace. 👀 https://t.co/GVhqxEWqf1 pic.twitter.com/uLQxu1C3RK
— Santiment (@santimentfeed) April 13, 2022
The chart the on-chain analytics platform shared also supports the argument. The chart points out that back in January, a Bitcoin whales transaction spike marked the price bottom. Similarly, another whale transaction spike marked the local price top in March.
Consequently, the elevated whale activity is highly bullish for the market. Meanwhile, it has also been observed from on-chain data that some Bitcoin whales have been buying Bitcoin consistently irrespective of price.
As shared by a market analyst Credible Crypto, Bitcoin whales trading on the Bitfinex crypto exchange have been buying aggressively. Similarly, another whale of unknown origin has been buying approximately $1 million worth of Bitcoin every day since late February going by data revealed on Twitter by user Capital15C.
Meanwhile, several well-known large investors have also added to their holdings recently including MicroStrategy, and Luna Foundation Guard (LFG). The latter added about $100 million worth of Bitcoins to its holdings to now be ranked among the top 20 biggest Bitcoin whales.
Bitcoin’s price continues to battle macroeconomic pressures
There is no doubt that the whale investors are taking the buy the dip opportunity the market is presenting at the moment. Despite the elevated whale activity, the price of Bitcoin has failed to find a grip on bullish trading.
Bitcoin has again descended below $40,000. At the time of writing, the pioneer crypto was trading at around $39,900, down 0.65% in the last 24 hours. It is down 11.8% on the weekly chart.
As maintained by market analysts the slide in the price of Bitcoin has been a result of growing concerns about inflation. Edward Moya, a senior analyst with Oanda, told Yahoo Finance that rising rates are leading to de-risking sentiments in the market.
“Bitcoin is struggling here as rising rates are leading to a de-risking moment for many traders, he said.
Asides from that, a growing correlation has also been observed between Bitcoin and the stock market which is playing a role in Bitcoin’s price retracement. A Bloomberg analysis revealed that Bitcoin’s correlation with the stock market is at an all-time high.