On-chain data shows: Smaller fish in particular have used the Bitcoin dip to replenish their stocks. Whales, on the other hand, have cashed out.
Who is behind the Bitcoin sale? There are many reasons for the mid-cycle dip: the mining exodus from China, worries about Bitcoin’s ecological footprint and generally negative market sentiment. At the end of the day, prices only fall because more traders are selling Bitcoin than buying. But who are the sellers: inside?
On-chain analyst Will Clemente has a clue: it’s the whales. Contrary to what was previously assumed, above all Bitcoiners with total assets of more than 1,000 BTC have massively sold off their holdings. Smaller fish, i.e. those with 0.001 BTC to 1 BTC, have their “bags” filled to the brim in the dip. This is what Clemente writes with reference to on-chain data from Glassnode on Twitter:
This allows for several conclusions. Accordingly, the bull run will only be able to continue when the whales that determine the market are swimming with the flow again.
While this is good for adoption, it shows that retail investors cannot sustain Bitcoin as a trillion dollar asset. I suspect if there is to be a continuation of this bull run we must at least see a jolt in new whales coming onto the network.
, writes Clemente on Twitter
Clemente is also bullish when it comes to SOPR. Accordingly, the on-chain indicator is drawing similar patterns as in February of this year – shortly before BTC started its spectacular rally.
The SOPR is an indicator that sets the ratio of the value of an output (i.e. a BTC transaction) to the value during its creation. In other words: If the SOPR> 1, then the owners of the outputs are in the profitable range.
Another bullish divergence can be seen in the SOPR, which measures the profit of the coins traded on a given day. Once again, we have a higher low in the ratio while there is a lower low in price. The last time there was such a marked bullish divergence was in late January when the price rallied strongly.
the analyst writes in Newsletter.
Celsius CEO: Bitcoin goes to $ 160,000 this year
And then there was Alex Mashinsky. The CEO of the crypto lending platform Celsius does not allow himself to be puffed up by the bearish behavior of the crypto market these days.
If the market rises too quickly, there has to be a correction at some point. But now the liquidations are over – the tank is empty. I envision us climbing out to $ 160,000 here. We have not yet seen the high for 2021.
Mashinsky admitted this Cointelegraph on record.