Bitcoin analyst: when they stop buying, it’s a bear market warning
Cryptocurrencies remain extremely volatile, with Bitcoin constantly on the verge of breaking its monthly high or hitting its monthly lows. One of the factors contributing to market volatility is that crypto markets are teeming with whales – a term given to someone who owns a significant amount of a particular asset. It is very common to witness the influence that whales have, on a respective token or sometimes, even on the whole market.
In this regard, crypto analyst Willy Woo takes a different point of view. According to the channel analyst Recent tweets), whales did not exactly control the crypto market. If not the whales, then who?
“It’s the retail business that is driving the Bitcoin bull markets. When they stop buying, it’s a bear market warning. They haven’t stopped buying.
Last 30 days: whales sold 4,000 BTC, plebs bought 31,000 BTC.
This chart displays weekly net flows to small holders (less than 1 BTC).
Small holders (who own
Although whales have played a vital role, it is only for the short span of time that Highlighted by Woo. The crypto bull said the whales only influence the short-term price action of Bitcoin, adding:
“Whales only drive the short-term market (which is the meme that is most focused on). In the macro timescale, I am referring to whales, dolphins and sharks that initiate the start of a bull market. The plebs (i.e. retail) rule the middle and end of the bull market.
In addition to that, this graph showed whale activity:
It emphasizes one important aspect, which is that the smaller whales have neutralized the selling pressure from their larger counterparts. About this, Woo said,
“My data is * all whales * (holders above 1k minus trades who are also“ whales ”in the raw data). What happens is the big whales that sell, the little whales that pile up, the net is almost neutral.
Another analyst presented a competing view, to support the aforementioned development. His fellow crypto analyst and bull, Will Clemente, answered a follower’s questions as below.
2. This uses features, so 1,921 whale features
3. 4,216,730 BTC
4. It’s a nice rise, but keep in mind that the trend has been going down for months. Watch to see if maybe this is another trend change. (whales accumulate instead of being distributed) Also observe new whales pic.twitter.com/ykXvVg9pNg
– Will Clemente (@WClementeIII) July 16, 2021
However, it is fair to say that this is contrary to the belief of many traders that large entities are the ones who run the state of the market.
For example, another analyst called Mr. Whale contradicts Woo’s opinions by stating,
Whales are the main drivers of the market. This data is misleading and desperate to paint a bullish picture, despite all measures pointing to a bear market.
This is why we cannot take these maxi “data analysts” seriously. They are simply misleading their subscribers with BS.
– Mr. Whale (@CryptoWhale) July 17, 2021