One of the most significant drawbacks for Bitcoin has been the sudden brake its whales hit as soon as the April crash took place.
Bitcoin whales’ transaction volume has reduced to less than $100 billion.
Before the crash, the average used to be $200 billion.
At the moment, BTC is trading at $20,481.
As it happens to be the king coin, Bitcoin is supposed to be calling the shots in the crypto market. However, recently the helm has been at the mercy of the altcoins, and since altcoins can’t always be the driving force, Bitcoin has been stuck at $20k for almost a month now.
Bitcoin Needs To Find a Way Out
To investors’ joy, there is a way out of this, and it rides on the back of Bitcoin’s whales. The cohort, which holds about 4.5 million BTC worth about $92.1 billion, represents 21% of the entire existing supply of BTC.
Thus their movements not only have an effect on Bitcoin’s price action but on the whole crypto market as well.
Back in April, when BTC marked its local top of $47.4k, whales, on average, were conducting transactions regularly and generating volume to the tune of $200 billion.
This continued until May when the crypto market crashed post when the volume noted a steep drop off.
By the beginning of June, the average whale transaction volume was reduced to a meager $100 billion, and at the time of writing, the same is sitting at just $66.4 billion.
A spike was noticed in the week ending June 20 when BTC tanked to its lowest point of $19.3k, and the volume jumped to $377 billion but came back down soon after.
Thus if Bitcoin intends on returning to its highs or at least to the point from where it can bounce off towards the $67k all-time high, whales are needed to become active again.
Should their transaction volume climb back to $200 billion on average, BTC too will jump to $40k provided there is support from the broader market.
Which Is Exactly What Is Missing Right Now
Trading at $20.4k, BTC has been in consolidation since June 16. The coin has risen by 6.8% from its $19.3k lows and still stands filed away from recovering the 40% loss of June.
The price indicators do not paint a definite image either since the Relative Strength Index (RSI) has been facing selling pressure for almost three months now. This has kept the indicator under the neutral line and stuck in the bearish zone.
To add to that, the Bollinger Bands aren’t highlighting any bullishness either, meaning BTC might remain to consolidate for a while longer.
Holding a Mass Media Degree has enabled me to better understand the nitty-gritty of being a journalist and writing about cryptocurrencies’ news and price movements, effects of market developments, and the butterfly effect of individual assets nurtured me into a better investor as well.