Analysts have said crypto whales are waiting to sell their BTC assets when the value reaches $20,000 per unit to maximize the profit. The cryptocurrency recently underwent an uptick trend, gaining over $1,000 on Wednesday and reaching a record level of $19,656.
Material Indicators analyzed the BTC/USD chart on the crypto trading platform Binance. It found that mega traders were “dumping into BTC support to minimize slippage.” The analytic firm explained that the “bulk of resistance” was just under the $20,000 line.
#FireCharts 2.0 (beta) shows brown Mega Whales dumping into #BTC support to minimize slippage. Let's see if $19.5k holds to set up another potential run at the R/S flip zone ~$20k. pic.twitter.com/eavJYkmN6u— Material Indicators (@MI_Algos) September 28, 2022
Social media crypto influencer Maartunn reported that there was a large area between $18,000 and 18,500 in which traders were interested to make their bids. Data on September 28 showed that the bid interest area was worth around $65 million and could be potential support for the crypto token.
Per Cointelegraph, if BTC reaches $17,600 per unit—June’s low—then it will lose support. At that point, the value may drop to $12,000.
Despite the bounce of BTC’s value in the past days, traders reportedly remained skeptical about whether it would last. Popular Twitter crypto analyst Cheds warned people against celebrating the bullish trend.
$65m (~3.488 $BTC) on bid iquidity is stacked between $18500 - $18000.— Maartunn (@JA_Maartun) September 28, 2022
Will this be enough to safe this range for a little longer?
Data by @Mtrl_Scientist & @MI_Algos #Bitcoin #Ethereum #Crypto #Data #Trading pic.twitter.com/VCnOzGCyJO
Crypto whales dictating BTC market
Crypto whales refer to parties that hold large quantities of tokens. BTC always claims that the finance system behind the token is decentralized. Analysts, however, have repeatedly insisted that the market may be more centralized than the traditional finance market, with a small number of crypto whales holding large reserves. Bitcoin has two percent of accounts for over 95 percent of BTC, per a Bloomberg report.
Responding to the statement, Glassnode said centralization existed within BTC. It said the number did not consider the address system.
Several parties known to hold large amounts of BTCs are crypto exchanges, corporations and Wrapped BTC. MicroStrategy, for example, keeps 130,000 BTC units. Satoshi Nakamoto, the elusive founder of Bitcoin, is also known to keep one million BTC under his name.
These whales can tamper with the BTC market by selling and buying assets. There is the “sell wall” tactic in which a crypto whale puts up a huge selling order for a significant number of BTC tokens. The whale will then sell them at a lower price spectrum.
This move will be followed by other investors selling their BTCs at even lower prices. As the real-time price of BTC goes down significantly, the whale may pull the selling order and buy more coins at a lower price.
Another tactic known in the crypto industry is the “fear of missing out." This tactic requires huge capital, with whales putting a bulk buying order and placing it at a higher price point. Bidders will then raise bids and sell orders to fill the buying orders.
Despite the bearish market trend plaguing the BTC since late 2021 due to inflation, crypto analysts have noted that whales were not necessarily affected by the condition. Kabir Seth of Speedbox said that these whales would likely maintain their BTC assets because they saw a correlation between the crypto and the traditional stock markets.
“There is no reason to believe that whales will abandon the Bitcoin ship, especially when there is an economic fear of an impending recession looming,” Seth added.