Bitcoin Bullish Signal: Whales Are Building Their Positions On Derivatives
October 22 2021 - 3:00PM
NEWSBTC
On-chain data shows whales are sending their Bitcoin from spot
exchanges to derivatives, indicating that they are building up
their positions. Bitcoin Whales Build Up Their Positions On
Derivative Exchanges As pointed out by a CryptoQuant post, Bitcoin
whales seem to be moving their crypto from spot exchanges to
derivative exchanges. The relevant indicator here is the “all
exchanges to derivative exchanges flow mean,” which shows the total
amount of coins being transferred from spot exchanges to derivative
exchanges. When the value of this metric shows continuous high
values, it means a lot of Bitcoin is being regularly moved to these
derivative exchanges, which may hint that whale activity has been
going on. Low values would imply not many coins are moving in this
direction, and could either be staying still, or be rather going
the opposite way: from derivatives to spot. Now, here is a chart
that shows the trend that this indicator has followed over the last
couple of years: The BTC all exchanges to derivatives flow mean vs
the price | Source: CryptoQuant The above graph has different
regions marked based on whether whales seemed to be accumulating at
that time or not. Related Reading | Despite New ATH, Bitcoin
Exchange Reserves Continue To Decline The green regions were when
the price was mostly moving sideways and the indicator had the
whales sending a lot of BTC to derivatives. Following these periods
of accumulation, the price had always shown a jump up during the
period of the above chart. However, once the indicator’s value
became very low, BTC’s price has seemed to have made a top after
which its value dipped down. Related Reading | Lucky Buyers
Possibly Bag $8K Bitcoin During Early Morning Flash Crash Now, as
is apparent in the graph, the current trend makes it look like
whales have just started another phase of accumulation. This could
turn out to be bullish for the future price. BTC Price At the time
of writing, Bitcoin’s price floats around $61.5k, up 2.7% in the
last seven days. Over the past month, the crypto has accumulated
42% in gains. The below chart shows the trend in the price of the
coin over the last five days: BTC's price seems to be rapidly
plunging down | Source: BTCUSD on TradingView After setting a new
all-time high (ATH) of $67k, Bitcoin has been sharply going back
down in the past couple of days. It’s unclear at the moment which
trajectory the coin might follow next, but if the spot to
derivatives flow mean is anything to consider, whales seem to be
accumulating. This could help the price bounce back up and set it
up to reach higher ATHs. Featured image from Unsplash.com, charts
from TradingView.com, CryptoQuant.com
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