Bitcoin (BTC) whales began to wait for the rise again, with new data pointing to “classic” bottoming behavior.
On-chain analytics platform to CryptoQuant According to the report, big investors are transferring coins to derivatives exchanges in masses this month.
Whales will try to hold their position
As the BTC/USD pair hovered at the lowest levels seen since late June, the whales also responded kindly.
Maartunn, an analyst at CryptoQuant, who shared a market update on September 7, found an increase in the average monthly number of transactions between spot exchanges and derivatives platforms.
According to Maartunn, whales transfer funds to limit their losses and to open positions in the future.
“A common thing seen in local tops is a spike in the Average Value Transferred from Exchanges to Derivatives (30-day MA) indicator. Guess what, this is happening now.”
This phenomenon was also developing before the last BTC price drop.
Looking at Ether (ETH), derivatives exchanges were already starting to see an increase in fund inflows ahead of the week’s Merge. Therefore, ETH markets are almost three months ahead of Bitcoin, according to Maartunn.
“Our assumption is that whales will deposit Bitcoin on derivatives exchanges to open long positions and protect their local bottoming positions,” the analyst continued:
“It should be noted: Ethereum has been in the leading market position for 80 days, especially due to Merge excitement. This excitement will end later in the month. This could have a significant impact on the crypto market.”
Loaded transfer transactions
On the other hand, as many as 5,000 BTC, which have been dormant since Christmas 2013, could be put up for sale, according to separate observations by monitoring resource Whalemap.
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Last week, several transactions of 5,000 BTC were made from a wallet that had been dormant for 9 years.
Someone cashed out 5000BTC yesterday making a whopping a $95,000,000 profit
Original price of acqusition was $698 for him which is a 2800% increase from current price
what a guy pic.twitter.com/mUuul2Z3YL
— whalemap (@whale_map) September 5, 2022
Whalemap said key on-chain support levels are $19,000, $16,000, and $13,000, based on past major accumulation zones.