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Bitcoin (BTC) whales are the center of attention again this week as large transactions flow back to exchanges.
Data from on-chain analytics platform CryptoQuant on Dec. 24 shows that relatively, whales are increasing their presence as potential sellers.
Action stations as Bitcoin climbs to $51,000
According to CryptoQuant’s Exchange Whale Ratio indicator, the proportion of large inflows to exchanges out of total inflows is now at a one-year high.
Inflows sped up significantly as BTC/USD rose to $51,000 overnight on Thursday, and the implication could be that large-volume investors plan to take profits at the top end of Bitcoin’s current range.
“It is better to watch out until BTC breaks $51k levels,” one CryptoQuant analyst cautioned.
“Once we surpass this level next significant resistance will be around $56,8k.”
Despite misgivings, Bitcoin managed to preserve its higher levels into Friday, these previously forming a key line in the sand for bullish sentiment to return.
Never mind the inflows?
Whales, meanwhile, are not new potential sellers. As Cointelegraph reported earlier in the month, larger investors have diverged from smaller retail hodlers in terms of buying behavior.
CryptoQuant and others confirm that this is still the case, with exchange withdrawals conversely reflecting “peak accumulation” similar to September before the breakout to $69,000 all-time highs.
#Bitcoin 100-1K wallets keep stacking and the supply controlled by them repeatedly hitting ATH.
Not saying it will definitely go parabolic like in the previous year but it surely looks like it. pic.twitter.com/d9qnA0VEeA
— Lex Moskovski (@mskvsk) December 24, 2021
Related: Missed out on hot crypto stocks in 2021? It paid just to buy Bitcoin and Ethereum, data shows
Miners, too, are holding onto their newly released coins from block subsidies, with their reserves now at six-month highs.
“Miners own more BTC than when BTC was at $69k, in fact, they added back all the BTC they net distributed since the drop from $69k,” contributor Venturefounder noted.
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By: Cointelegraph By William Suberg
cointelegraph.com