Bitcoin whales send BTC to futures exchanges in 'classic' bottom signal

bitcoin ( BTC ) whales are betting on a rebound as new data shows ‘classic’ bottom behavior. According At on-chain analytics platform C...


bitcoin (BTC) whales are betting on a rebound as new data shows ‘classic’ bottom behavior.

According At on-chain analytics platform CryptoQuant, high-volume investors are moving coins en masse to derivatives exchanges this month.

Analyst: Whales protect positions ‘forming local bottom’

As BTC/USD reached its lowest levels since late Junethe whales answered amiably.

In one of his Quicktake Market Updates published on September 7, CryptoQuant analyst Maartunn reported a marked increase in the monthly average number of trades made between spot exchanges and derivatives platforms.

The whales, Maartunn explained, cover their losses and transfer funds to be used in futures betting.

“A typical thing for local funds is a spike on trades to derivative trade flows (30d MA). And guess what, it’s happening right now,” he began.

The phenomenon was already underway before the last BTC price drop.

On ether (ETH), derivatives exchanges were already seeing an increase in inflows before the merger event scheduled for next week. As such, ETH markets have currently been leading Bitcoin for nearly three months, says Maartunn.

“The assumption of this thesis is that whales will deposit Bitcoin on derivatives exchanges to open futures (long) positions and will be able to protect their positions by forming a local fund,” the update concludes:

“Important thing to note: Ethereum has been leading the market for already 80 days, mainly due to the hype “The Merge”. This hype will end later this month, which could have a significant impact on the market This could strongly imply observations like this.

Annotated table of bitcoin spot-to-derivative exchange transactions. Source: CryptoQuant

Major collections continue

Meanwhile, separate sightings from monitoring resource Whalemap focused on a potential selloff of 5,000 BTC, which had previously lain dormant since Christmas 2013.

Related: Bitcoin is a ‘wildcard’ destined to outperform – Bloomberg analyst

This decision follows suspicions about several slices of 5,000 BTC circulating on the network after nine years of hibernation in recent weeks.

Whalemap also reiterated key on-chain support levels in place based on a significant volume accumulation in the past. These come in the form of $19,000, $16,000, and $13,000.

“Prime time for $BTC,” the Whalemap team wrote in comments as June lows returned.

Annotated chart of Bitcoin volume profile. Source: Whalemap/Twitter

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