- Whale transactions have increased to levels not seen in more than six months.
- Bitcoin’s exchange net flow suggested the absence of a sell-off.
Recently a rise in Bitcoin [BTC] whale trades coincided with a price drop caused by a market crash. Were these transactions indicative of a sell-off or a strategic accumulation of the whales?
Bitcoin whales intensify transactions
In the wake of the recent king coin price volatility, transactions by Bitcoin whales have noticeably increased. According to AMBCrypto’s analysis of Santiments In the chart, transactions over $100,000 increased significantly around January 4 and 5.
The graph shows that the number of transactions in this category is more than 34,000. Notably, this was the first example of whale trades reaching such heights since June 2022.
However, it is worth noting that the number of transactions had been reduced to around 9,400 at the time of writing.
Source: Santiment
Sellout or Accumulation?
The recent transaction surge by Bitcoin whales sparked curiosity about the trading direction. One way to gain insights is to examine the exchange flow of BTC during and after the increase in transactions.
AMBCrypto’s investigation into CryptoQuant’s grid data has shown consistent negativity in recent days. Except for January 4, where there was a slightly positive inflow of about 1,500 people, there were negative flows on other days.
Source: CryptoQuant
However, a closer look at the graph revealed that the negative flow was insignificant, indicating a large inflow.
At the time of writing, the net flow was -1,174. AMBCrypto’s analysis of exchange flow suggested a lack of evidence pointing to a sell-off at major addresses. On the contrary, there were indications of small accumulations.
This implied that some traders were trying to take advantage of the marginal price drop.
Bitcoin’s volatility shows slight contraction
AMBCrypto’s research on Bitcoin’s daily time frame revealed a notable observation: it consistently maintained a position above its short-term average (yellow line). Despite the continued decline, it appeared that the general trend remained positive.
Read Bitcoin’s [BTC] Price forecast 2024-25
Research further revealed minimal fluctuations over the past three days. At the time of writing, the stock was trading at over $44,290, showing an upside of less than 1%.
Source: trading view
A look at Bitcoin’s Bollinger Band (BB) suggested a slight reduction in BTC volatility at the time of writing. The trend showed a bullish stance, as evidenced by the Relative Strength Index (RSI).