Recent twitter.com/santimentfeed/status/1791213881722806555?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>data de Santiment indicates a notable decline in bitcoin whale activity, reaching the lowest levels seen in 2024. This trend shows that holders of large amounts of bitcoin, known as whales, are moving away from active trading.
While this could indicate a negative trend, the situation presents a complex picture of cryptocurrency market dynamics.
Despite the drop in whale activity, the total number of bitcoin wallets with at least 100 btc remains high, with 11.79 million btc in 15,907 wallets.
Historically, increased activity from these large holders has often preceded major price movements in bitcoin, suggesting that their current tranquility could lead to various market outcomes. The question remains: What does this reduction in activity mean for the future of the market?
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Analysis of whale activity: what this means for bitcoin
A decrease in whale activity could initially be interpreted as an indicator of lower market volatility. Significant movements by these large holders can profoundly affect the price of bitcoin, often resulting in abrupt and unforeseen fluctuations.
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While twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>#bitcointhey are 100+ twitter.com/search?q=%24BTC&src=ctag&ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>$btc Whale wallets continue to maintain a high level of coins (11.79 million), whale activity has fallen to its lowest level of 2024. There are currently 15,907 wallets with at least 100 coins. It would be a twitter.com/hashtag/bullish?src=hash&ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>#bullish sign if it goes up. https://t.co/nldtOms3aT pic.twitter.com/Lyj4Epfp9a
– Sentiment (@santimentfeed) twitter.com/santimentfeed/status/1791213881722806555?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>May 16, 2024
Consequently, a lower presence of whales could generate a lot of stability and predictability in the market in the short term. However, this stability could contradict the typical trading behavior associated with cryptocurrencies, where volatility often presents trading opportunities.
Furthermore, if these whales hold onto their bitcoin instead of selling it, this behavior could be interpreted as a long-term bullish signal. It suggests that these influential market players see the potential for future price increases and are choosing to maintain their positions.
This outlook is reinforced by bitcoin's current trading price, which is above $66,000, up nearly 5% over the past week.
The indicator shows a further increase in the future
In addition to the analysis, Willy Woo, a prominent crypto analyst, analyzed the latest trends in the btc Volume Weighted Average Price (VWAP) oscillator. The VWAP is a trading benchmark that measures the average price of an asset based on price and volume over a specific period.
This metric prioritizes price levels with higher trading volumes, offering a more complete view of market trends.
Woo's analysis revealed that bitcoin's VWAP oscillator has been in negative territory for several months, but has recently begun to rise. If this uptrend continues, the oscillator could soon reach a neutral point.
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This change often indicates that there is a bullish phase on the horizon, based on historical patterns where the rise of the oscillator from negative to neutral has coincided with substantial price gains for bitcoin.
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There is still plenty of room to go before a reversal or consolidation.
I hate being trapped twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>#bitcoin endure right now. https://t.co/LGet9XVoQY pic.twitter.com/EgJ47mzNLG
— Willy Woo (@woonomic) twitter.com/woonomic/status/1791074896468230585?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>May 16, 2024
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