Bitcoin has witnessed a surge in whale activity since the US election concluded on November 5, with a rise in the volume of Bitcoin moved to exchanges by active whale addresses. Interestingly, this has not resulted in a significant increase in profit-taking activity among these prominent holders, as revealed by a CryptoQuant analyst named Onatt in a recent post on the QuickTake platform.
This latest report by Onatt delves deeper into the whale activity, highlighting the absence of immediate selling pressure despite the surge in Bitcoin inflows to exchanges. Rather than liquidating their holdings, these whales appear to be adopting a “wait-and-see strategy.” According to the analyst, they are likely using their Bitcoin for purposes such as hedging, over-the-counter (OTC) transactions, or collateral.
Despite this strategy suggesting market stability, Onatt warned that “these movements should be closely monitored to anticipate any possible market impact.” To further elaborate on this, Onatt’s analysis revealed that the Adjusted Spent Output Profit Ratio (SOPR) metric, which tracks profit-taking activities, has not yet indicated significant movements.
Conventionally, substantial inflows of Bitcoin into exchanges have been linked with increased selling pressure. Yet, the current situation deviates from this norm. Instead, these movements may mirror strategic maneuvers by whales as they brace for potential market shifts.
While the immediate risk of sell-offs seems low, Onatt cautioned that the continuous rise in Bitcoin exchange inflows could predict future volatility.
Bitcoin’s market performance has been somewhat steady, hitting an impasse after trading above $95,000. Over the past weeks, Bitcoin has remained at this price point, resisting bearish attempts to push it below $95,000.
In the past week, Bitcoin’s movement has been minimal, registering only a 2.5% increase. In the past 24 hours, the digital asset experienced a slight decrease of 1.2% and is currently trading at $95,837.
Interestingly, Bitcoin’s daily trading volume has shown a contrasting trend. Despite the negligible price movement, Bitcoin’s daily trading volume has significantly increased from below $60 billion on November 29 to currently stand at $94.5 billion.
This rise in Bitcoin’s trading volume over the past few days could be attributed to sell-offs, considering its current price trajectory. According to a renowned analyst known as Ali on X, Bitcoin has formed a head and shoulder pattern on its 1-hour chart, which now signals a correction to $90,000 levels.
As the Bitcoin market continues to evolve, these whale movements and trading patterns are critical to understanding potential price shifts and market volatility. Hence, they demand close monitoring and strategic navigation by investors and traders.
