As a seasoned crypto investor with a keen interest in on-chain analysis, I’ve seen my fair share of market fluctuations and whale behavior. The recent surge in bitcoin whale inflows to exchanges, as reported by Phi Deltalytics and Woominkyu, is a cause for concern.
Bitcoin‘s big investors, or “whales,” seem to be cashing out their gains from the recent Bitcoin price surge based on observations made by on-chain analysts. There has been an increase in transactions moving Bitcoin to centralized cryptocurrency exchanges.
Based on a recent analysis by an anonymous cryptocurrency expert named Phi Deltaytics in a CryptoQuant Quicktake, a significant proportion of Bitcoin whale transactions are currently going towards exchanges.
Whales May Be Taking Profits
As a financial analyst, I’ve noticed an intriguing development in the bitcoin market on April 25. In my latest analysis, I pointed out that long-term bitcoin holders, or “whales,” have been sitting on substantial unrealized profits with bitcoin trading above $60,000. By examining the chart, it became clear that these whales had not yet cashed out on their gains. Instead, they continued to hold onto their investments, potentially waiting for more favorable market conditions before making any moves.
An analyst discovered a noteworthy surge in the potential profits of a specific group of Bitcoin investors on the chart. This signified that these investors were keeping their holdings. Yet, he issued a caveat, explaining that cashing out those gains could influence the market negatively.
As a data analyst, I’ve noticed an intriguing development in the bitcoin market. Approximately 24 hours following Woominkyu’s post, Phi Deltalytics reported a significant increase in Bitcoin exchange inflows. A substantial portion of this influx can be attributed to transactions made by large-scale investors, or “whales,” as they are commonly referred to in the cryptocurrency community.
Phi Delta Analytics stated, “This increase could indicate large-scale profit-taking by Bitcoin ‘whales’ during the 2024 bull market. However, it’s important to remember that such indicators can sometimes be misleading, so careful consideration is necessary when analyzing market trends.”
Long-term Holders Are Cashing Out
As a long-term crypto investor, I’ve noticed an interesting trend in the Bitcoin market recently. Alongside the actions of bitcoin whales, I’ve observed that long-term holders have been selling off their digital assets in greater numbers than short-term holders over the past week. This is evident from a surge in the Spent Output Profit Ratio (SOPR) for long-term holders compared to short-term holders based on a seven-day moving average. Essentially, this data suggests that long-term investors have been realizing more profits than their short-term counterparts during this period.
Long-term investor Woominkyu shared that the Spent Output Price Ratio (SOPR) of long-term holders has seen a downward trend in recent years. Yet, there are instances when this ratio increases, leading up to significant price increases in Bitcoin. These price surges provide an opportunity for long-term investors to cash in on their investments. However, it’s essential to exercise caution as the current high SOPR may signal potential price corrections and increased market volatility.
Currently, Bitcoin is holding steady between $60,000 and $70,000. A potential significant drop may occur if BTC reaches $70,000 and gets rejected at that level. At present, the cryptocurrency is trading around $64,100 with minimal fluctuations over the last day.
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2024-04-26 19:57