Bitcoin's recovery continues as the bull's eye $ 6,000. | Chart via Barchart.com. been involved in bitcoin since the very early stages when it was far removed from regular attention, he evaluated the underlying technology behind cryptocurrency and determined that it would be a "good prospect for society …" he has accumulated 7000 BTC during his Lifetime, which equates to about $ 40 million in current prices, the wealth would swell to $ 350 million if the BTC reaches its target of $ 50,000.
Is Whale manipulative bitcoin?
Whales play an important role in the crypto course market, but "manipulation" is probably not the best way to describe their behavior. Like all other market participants, whales have an interest in bitcoins prices, and as long-term holders, they will likely see cryptocurrency increases in the future.
In September, Hacked considered whether the whales were responsible for bitcoin's death in 2018. In particular, we saw a sudden correction in bitcoins price in early September, which chopped off $ 1000 within 24 hours. A whale may have knocked out the seal, but they cannot be due to the bear market. Hacked elaborated why this is the case in a follow-up article in October titled Bitcoin Whales to the Rescue?
The article is based on data from Chainanalysis to show that bitcoin whales are not so fun after all. In fact, whales have largely been misunderstood.
First, a large majority (some two thirds) of whales are not active traders. As Chainanalysis noted:
"Overall, they seem to stabilize the market in recent price declines, instead of exacerbating price movements. This makes sense since these trades are professionals without interest in arguing the market. When they need liquidity, traders are likely to use OTC trading platforms that are equipped to handle large transactions with minimal market disturbance. "
This doesn't mean whales do not affect bitcoins price. They certainly do. The last example occurred at the end of March when a single trader bought $ 100 million worth of BTC over three separate cryptocurrency exchanges. The BDC Group confirmed that the three exchanges were Coinbase, Kraken and Bitstamp.
This purchase order helped construct a 20% rally in the bitcoins price, which led to one of the best monthly gains in recent memory. Read more: Bitcoin is on a two-year milestone .
But the mysterious purchase order followed months of steady accumulation for the greatest cryptocurrency. It was later confirmed that bitcoin entered its new four-year cycle at the beginning of 2019, when price action continued to decline from December to December. In other words, the market had turned long before the whale started buying.
If investors are interested in keeping tabs on bitcoin whales, hibernating accounts should be the place to start. Some of these sleeping wallets were activated in the last stages of 2018; At that time, it was a vomit if they wanted to be online buyers or online retailers of BTC. With the price floor fixed in place, it seems that most of the activity has been on the long side.
The market for cryptocurrency has turned a large corner since the beginning of the year, but the road ahead is not without major obstacles. Markets are in a dominant uptrend, but big and painful shakeouts can be expected. For long-term holders this will not be a problem. Those who buy bitcoin by margin or use excessive influence will feel the pain.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He has investment positions in the coin, but does not engage in short-term or day-to-day trading.
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