Bitcoin Whales Quiet Down – Here’s Why And What It Means For The Market
May 17 2024 - 3:00PM
NEWSBTC
Recent data from Santiment indicates a noticeable decrease in
Bitcoin whale activity, reaching the lowest levels seen in 2024.
This trend shows that holders of large amounts of Bitcoin, known as
whales, are drifting away from active trading. While this could
signal a negative trend, the situation presents a complex picture
of the cryptocurrency’s market dynamics. Despite the fall in whale
activity, the total number of Bitcoin wallets with at least 100 BTC
remains high, at 11.79 million BTC across 15,907 wallets.
Historically, increased activity from these large holders has often
preceded significant price movements in Bitcoin, suggesting that
their current quiet could lead to various market outcomes. The
question remains: What does this reduced activity mean for the
market’s future? Related Reading: Is Bitcoin’s Rally Over? Top
Analysts Predict Imminent Price Corrections Analyzing Whale
Activity: What This Means For Bitcoin A decline in whale activity
could initially be interpreted as an indicator of lower market
volatility. Significant moves by these large holders can profoundly
affect Bitcoin’s price, often resulting in abrupt and unforeseen
fluctuations. 🐳 While #Bitcoin‘s 100+ $BTC whale wallets continue
to hold a high level of coins (11.79M), whale activity has dropped
to its lowest level of 2024. There are currently 15,907 wallets
holding at least 100 coins. It would be a #bullish sign if this
rises. https://t.co/nldtOms3aT pic.twitter.com/Lyj4Epfp9a —
Santiment (@santimentfeed) May 16, 2024 Consequently, a diminished
presence of whales might lead to much market stability and
predictability in the near term. However, this stability might
contradict the typical trading behavior associated with crypto,
where volatility often presents trading opportunities. Moreover, if
these whales hold onto their Bitcoin rather than sell, this
behavior could be interpreted as a long-term bullish signal. It
suggests that these influential market players see the potential
for future price increases and are choosing to hold their
positions. This perspective is reinforced by the current trading
price of Bitcoin, which is above $66,000, marking a nearly 5%
increase over the past week. Indicator Shows Further Surge Ahead
Adding to the analysis, Willy Woo, a prominent crypto analyst,
discussed the latest trends in the BTC volume-weighted average
price (VWAP) Oscillator. The VWAP is a trading benchmark that
measures an asset’s average price based on price and volume over a
specific period. This metric prioritizes price levels with higher
trading volumes, offering a more comprehensive view of market
trends. Woo’s analysis revealed that the Bitcoin VWAP Oscillator
has been in negative territory for several months but has recently
started to rise. The oscillator could soon reach a neutral point if
this upward trend continues. Related Reading: The Hidden Forces
Behind Bitcoin Price: Latest Insights From On-Chain Data This shift
often signals that a bullish phase is on the horizon, based on
historical patterns where the oscillator’s rise from negative to
neutral has coincided with substantial price gains for Bitcoin.
Still a lot of room to run before reversal or consolidation. Hate
to be a trapped #Bitcoin bear right now. https://t.co/LGet9XVoQY
pic.twitter.com/EgJ47mzNLG — Willy Woo (@woonomic) May 16, 2024
Featured image created with DALL·E, Chart from TradingView
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