While many analysts are still pointing to more bullishness for the price of Bitcoin (BTC) in the coming months, a popular indicator shows that the current peak is already happening.
Using the nickname “CryptoWhale”, the analyst warned his followers on Twitter of the transactions made by major market players, which included 400,000 BTC in the last few hours, and made more than 30 transactions in total. Based on the transactions recorded on the blockchain, these records found by another Twitter user show that the cryptocurrencies were moved to the exchanges. Here comes the question: What is the purpose of moving Bitcoins to crypto money exchanges?
Bitcoin (BTC) Liquidation May Be Possible
CryptoWhale thinks this is because these accounts are on the brink of dumping after netting some profits from Bitcoin that has exceeded $ 12,000.
The analyst had previously suggested that large amounts of BTC have been sent to exchanges by major players in the market. In a chart shared on Twitter, the volume transferred to exchanges on July 27 was collected at the time of the power move when Bitcoin crossed $ 10,000 a day to $ 11,000. Volume continued to increase as Bitcoin formed a slowly rising triangle.
From the table above, the latest sales volume approached these levels in February and March 2020. The sale eventually peaked on March 12, 2020, and with a massive price drop, BTC dropped below $ 4,000.
Whales Heading To Cryptocurrency Exchanges
It should be noted that the volume of Bitcoin going to the exchanges peaked before March 12. CryptoWhale stated that this is the indicator it uses to shorten the market. The analyst’s theory suggests that with massive entries in the stock markets in the past few days, whales have already made a profit and want to sell. For this reason, there may be another big drop like in March.
Last June, CryptoWhale published its own price prediction for Bitcoin using Fermi-Dirac statistics and predicted that BTC will initially approach $ 2,000 before a proper bull run by 2022.
However, many responses on Twitter objected to CryptoWhale’s forecast for a price decrease due to its relationship with March 12. Others argued that the March 12 crash was more than just crypto whale activity. It should not be forgotten that all markets, crypto or not, were liquidated that day.
Despite CryptoWhale’s price drop forecast, its long-term view is still optimistic. Similar to the Stock Flow (S2F) model, the analyst’s model based on quantum analysis points to the $ 24,000 Bitcoin price by mid-2022.