A Bitcoin (BTC) whale – a single investor with a large amount of BTC – made a profit after two years. Data from Whalemap shows that the whale bought nearly 9,000 BTC in the third quarter of 2018.
A trader under the pseudonym “The Byzantine General” who shared the data said:
“This whale is a myth. Do you see that big bubble of about 6,000 in 2018? That’s about 9,000 BTC that has accumulated there. After two years and two major surrender events, it ended up making a profit.”
The whale held BTC in two main phases of surrender for about 22 months. Bitcoin fell below $ 4,000 twice, the first in January 2019 and the second in March 2020. The investor waited in both periods and eventually sold at around $ 12,000.
How many bitcoins does the whale own?
How many bitcoins does the whale own? Source: Byzantine General, Whalemap
What does the Bitcoin whale profit suggest?
On Aug. 16, Cointelegraph reported that large whale populations are in the $ 12,000 to $ 14,000 range. At the $ 12,000 level, many whales are either profitable or at break-even point, which may encourage the whales to sell.
It remains unclear whether the whales are concerned that Bitcoin has reached a local peak. Whales follow liquidity due to the size of their populations. If they think there is enough liquidity to sell, possibly due to increased retail activity, they will likely sell.
Hence, the whale sale does not necessarily show that Bitcoin has peaked. One could argue that this increases the chances of consolidation in the short term. But by the time BTC falls below major support levels, it will be too early to suggest a local spike. It’s also difficult to estimate how much 9,000 bitcoins the whale sold.
The reason some whales are benefiting at current levels may be Bitcoin’s relatively large size. According to another trader under the pseudonym Bitcoin Jack, the spot market remains “awkward”. He said:
“The market remains awkward at the moment. The market still has a relatively high level of chain dominance, so that the price increase is imminent again. The trend is unclear, but lower derivatives versus spot exchanges and market versus onchain dominance suggest that we haven’t seen an irrational spike. “”
When the market is heavily driven by the derivatives market, whales have less liquidity to demand, and slight withdrawals can lead to large price movements.
What retailers expect in the short term
In the short term, traders are still mixed with sentiment about Bitcoin. Michael Van de Pope, a full-time trader on the Amsterdam Stock Exchange and analyst at Cointelegraph Markets, says Bitcoin could fall as high as $ 10,000 if you lose $ 11,450. He said:
“It’s very easy to get here as there is a $ 11,600 denial. If we keep the area at $ 11,450-11,500, we will have a breakout of around $ 12,000 for the next week. I’m losing the green zone and the target $ 10,700 or even $ 10,000. ”
After a nearly triple price hike, the short-term consolidation phase could boost Bitcoin’s long-term momentum.