Bitcoin whale activity increases, reason for recent Bull Run?
According to data shared by Material Indicators, an on-chain analytics firm, Bitcoin whales continued to buy the dip while prices were down. The firm suggested that buyer activity on Binance climbed, with massive buy orders in excess of $100,000.
This is not looking like a healthy rally.
— Material Scientist (@Mtrl_Scientist) March 7, 2021
Remember what happened the last few times when mega-whales sold into rising prices?#Bitcoin pic.twitter.com/MnemBa0Lqp
It is common knowledge that investors try to “buy the dip” and “sell the high.” Interestingly, while activity from smaller investors slowed down, big players stepped up their game to acquire more of the digital gold.
The chart shared by Material Indicators revealed that whale activity rose during the dip and peaked to a new all-time high.
Interesting... the stimulus passing hardly did anything to make mega-whales reconsider their bias, but China bailing out tech stocks apparently did!#BTC pic.twitter.com/GLPl4Jf8tj
— Material Scientist (@Mtrl_Scientist) March 9, 2021
A possible explanation is that while retail traders were more concerned about Bitcoin dropping even lower or buying in high, whale investors are most likely accumulating. To support this narrative, BTC PEERS earlier reported that the number of Bitcoin held on exchanges dropped to a two-year low, suggesting that investors are moving their holdings into cold storage.
Material Indicators was quick to remind its audience that the rally may not be healthy since whales may sell as prices rise again. This might arguably cause a repeat of the pattern of increased price followed by a quick correction.
Meanwhile, as of press time, the price of Bitcoin had risen and was exchanging hands at over $57,000.
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