On-chain data shows that huge Bitcoin whales are not in the mood to act on current prices. However, “whales hibernate and wait for the right moment to wake up,” says Caue Oliveira, an analyst at BlockTrends.
Bitcoin whales “waiting for the right moment to wake up”
On-chain data showed that the whales were not yet close to awakening. In a July 14 Twitter thread, BlockTrends analyst Caue Oliveira highlighted what he describes as the ongoing “hibernation” among whale wallets. According to Oliveira:
Whales hibernate and wait for the right moment to wake up… It can be tracked in both BTC and dollars based on corporate movements or trading volume moving in a short period of time, commonly referred to as “whale activity.”
The chart above shows a marked lack of large volume transactions on the network in recent months. Meanwhile, only the Terra LUNA boom caused a temporary trend break. Oliveira interprets this situation as follows:
Here we have a clear view of the low corporate activity that briefly woke up in the LUNA collapse but returned to hibernation, almost non-existent after May.
What will happen if the whales wake up?
Whales (wallets over 1,000 BTC) are accumulating BTC quickly. Currently, this class of investors has bought 140,000 BTC per month from crypto exchanges. They also currently hold 8.69 million BTC, which is about 45.6% of the circulating supply.
However, the accumulation has always been very slow. In this case, it is one of the reasons why the price is not so appreciated. Also, smaller whales aka shrimps are taking advantage of the current low prices. In the last two quarters, shrimp added about 36.75k BTC per month, about 0.2% of the total circulating supply, and now has a total of 1.12 million BTC. As the whales never want to lose money, the ones that wake up again will likely be the start of the rally. However, it should not be ignored that whales will sell BTC.
–Analysts are waiting for these levels in Bitcoin price
Popular crypto analyst Justin Bennnet has identified the next targets of BTC bulls. The analyst says that BTC staying above $20,400 is crucial for further bullishness. According to Bennnet, Bitcoin bulls will target $ 21,100 after this level.
Another popular analyst, Crypto Tony, is also in a mood of modest optimism over short time frames. The analyst expects a move towards $21,700 to take a profit.
Stuck hovering around the EQ currently of the range. I am still in my long and looking for a flip so we can push up to my final range target of $21,700 🤝
Invalidation point now $19,600 pic.twitter.com/Q8e0oy4UuV
— Crypto Tony (@CryptoTony__) July 15, 2022
cryptocoin.com As you can see from the analysis on .BTC, this week, BTC was traded in a narrow range limited to $19-22K. The leading cryptocurrency is preparing to test the $21,000 resistance at the time of writing.
