CryptoQuant boss Ki Young Ju reveals how bitcoin whales play in the market, while BTC consolidates between $ 50,000 and $ 60,000.
In a new tweet, the head of the chain analysis platform says he has witnessed large bitcoin transfers, which are likely to take place at the counter (OTC).
“Whales are accumulating BTC. Massive bitcoins have been transferred, but these transactions are not from exchanges. Possible OTC transactions. NVT’s gold cross remains very low, which means that the volume of transactions is large compared to the market capitalization. “
According to CryptoQuant, the golden cross NVT (Network to Value Transactions) is a signal that indicates the formation of a local peak or bottom. A value below -1.6 suggests that bitcoin may be ready for a strong leg up. At the end of April, NVT’s golden cross metric was -2.95.
“The NVT Golden Cross indicator reached its lowest level in a year. BTC has the potential to increase in terms of the NVT valuation model. “
In addition, Ki emphasizes that the whales are transferring BTC to derivatives exchanges, pointing out that they can bet on the rise of Bitcoin in the short term.
“A significant amount of BTC has moved to derivative exchanges from other exchanges, which means that whales can open a long position using their BTC as collateral. This happened in failure. ”
Another signal that shows a huge accumulation of whales, according to Ki, is the rising Coinbase premium, which he says is a sign that institutional investors are buying bitcoin.
“Institutions like Tesla use Coinbase Prime to buy or sell BTC. These would be orders that could affect the price of BTC. The Coinbase premium has been negative / neutral for the last 7 weeks, but has recently turned positive, reaching a record high a week ago. Long-term bullish. “
The strong signals on the chain come when Bitcoin recovers from the nearly fifty-day low of $ 47,159.49. At the time of writing, Bitcoin is trading at $ 57,499, up 14% in the last week, according to CoinMarketCap.
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Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors must take due care before making any high-risk investments in bitcoin, cryptocurrency or digital assets. Please note that your transfers and transactions are at your own risk and the losses you may incur are your responsibility. Daily Hodl does not recommend buying or selling cryptocurrencies or digital assets, nor is Daily Hodl an investment advisor. Please note that The Daily Hodl is involved in affiliate marketing.
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