Bitcoin ($BTC) whales have seemingly been dictating the price of the flagship cryptocurrency over the last few weeks, as analysts have noticed local tops and bottoms have seen significant whale activity.
According to researchers from Whalemap, large wallet inflows have been seen near local tops and bottoms, seemingly as large BTC holders choose to buy or sell the cryptocurrency near these areas. In a tweet first spotted by Cointelegraph, Whalemap pointed out traders looking to reduce risk trading short timeframe could simply be following these whales.
Notably, data has shown that Bitcoin whales have been taking advantage of the cryptocurrency’s market downturn to accumulate more BTC after distributing their coins ahead of the recent sell-off.
A metric known as the “Accumulation Trend Score” has been at a 0.9 high for nearly two weeks now. The metric reflects the aggregate accumulating or distribution trend seen by Bitcoin investors on-chain while filtering out miners and cryptocurrency trading platforms.
When the Accumulation Trend Score is closer to zero it reflects investors are distributing their holdings or simply stopped accumulating. When it rises to be near 1, it shows investors have been strongly accumulating BTC.
Whales have likely been accumulating even as they trade local tops and bottoms, as popular cryptocurrency analyst Credible Crypto noted in a tweet that a specific Binance whale he has been watching traded at every local top and bottom.
Notably, BTC holders with long-term time horizons are doubling down on their exposure to the cryptocurrency, as the percentage of BTC owned by addresses holding for one year or longer has expanded, while short-term traders are “fading away.”
The accumulation has been ongoing even as an analysis conducted by the head of research at analytics firm IntoTheBlock, Lucas Outumuro, suggested the recent market drawdown has made it “harder and harder to argue we are not in a bear market,” and made it “clear that crypto is not for the faint of heart.”
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