Home Coins Bitcoin (BTC) This Bitcoin Whale Sold at $12,000 BTC Price After HODLing for 2...

This Bitcoin Whale Sold at $12,000 BTC Price After HODLing for 2 Years

A Bitcoin (BTC) whale — an individual investor who holds a large amount of BTC — took profit after two years. Data from Whalemap suggests the whale purchased nearly 9,000 BTC in the third quarter of 2018.

A pseudonymous trader known as “Byzantine General,” who shared the data, said:

“This whale is a legend. See that big bubble around 6k in 2018? That’s almost 9k BTC that was accumulated there. He finally took profit, after 2 years and 2 major capitulation events.”

The whale held on to the BTC for nearly 22 months, through two major capitulation phases. Bitcoin dropped to sub-$4,000 level twice, first in January 2019 and second in March 2020. The investor waited through both periods, ultimately selling at around $12,000.

Number of Bitcoin held by a whale

Number of Bitcoin held by a whale. Source: Byzantine General, Whalemap

What does a Bitcoin whale taking profit suggest?

On Aug. 16, Cointelegraph reported that large whale clusters are present in the $12,000 to $14,000 range. At the $12,000 level, many whales are either in profit or at breakeven, which arguably could give whales an incentive to sell.

Whether it shows whales are cautious that Bitcoin has hit a local peak remains unclear. Whales, due to the sheer size of their holdings, follow liquidity. If they feel that there is sufficient liquidity to sell, possibly as a result of rising retail activity, then they are likely to sell.

Hence, a whale’s sell-off does not necessarily show that Bitcoin has peaked. One could argue that it raises the chances of consolidation in the short term. But until BTC drops below key support levels, it is premature to suggest a local top has formed. Also, it is difficult to estimate how much of the 9,000 BTC the whale sold.

A reason some whales appear to be taking profit at current levels might be Bitcoin’s relatively high spot volume. According to another pseudonymous trader known as Bitcoin Jack, the market remains “awkwardly” driven by the spot market. He said:

“Market remains awkwardly spot driven for now. Market remains relatively high on-chain dominance Price expansion is therefore imminent again—direction unclear but low derivatives vs spot and spot exchange vs onchain dominance indicates we have not seen an irrational top.”

When the market is heavily driven by the derivatives market, whales have less liquidity to seek, and minor pullbacks could cause large price movements.

What traders expect in the near term

In the short term, traders remain mixed on the sentiment around Bitcoin. Michael van de Poppe, a full-time trader at the Amsterdam Stock Exchange and Cointelegraph Markets analyst, says BTC could drop to as low as $10,000 if it loses $11,450. He said:

“Pretty easy going here as there’s a rejection at $11,600. If we hold the $11,450-11,500 area I think we’ll have a breakout towards $12,000 in the coming week. Losing the green zone and I’m targeting $10,700 or even $10,000.”

Following a nearly three-fold increase in price, a consolidation phase in the near term could strengthen the momentum Bitcoin in the longer term.



First published here

- Advertisement -
Mr Bitcointe
Mr Bitcointehttps://www.bitcointe.com/
“Fact You Need To Know About Cryptocurrency - The first Bitcoin purchase was for pizza.” ― Mohsin Jameel
474FansLike
76FollowersFollow
4,567FollowersFollow
5,261FollowersFollow
1,579FollowersFollow
2,230SubscribersSubscribe
USD - United States Dollar
EUR
1.18
GBP
1.29
CHF
1.10
NOK
0.11
JPY
0.01
CAD
0.76
AUD
0.73

Most Popular

Brazen Nigerian Crypto Scam Inksnation Still Operational Three Months After Regulator Warning

One of Nigeria’s most brazen crypto scams, Inksnation remains operational and still invites new investors some three months after the country’s Securities...

Former government contractor avoids jail for mining crypto at work

A former government contractor in Australia who mined crypto using state-owned supercomputers has avoided jail time. According to The Sydney Morning Herald, Jonathan Khoo...

Party at Vitalik’s House? For DeFi, it’s Do-or-Die

Ethereum gas prices have set new records, with single DeFi transactions costing over $10 in fees. High fees are the result of...

The battle between DeFi, CeFi and the old guard

We aren’t taught real economics in school. We learn, instead, voodoo economics. For example, rarely — if ever — do professors present us with...
bitcoin
Bitcoin (BTC) $ 10,842.04
ethereum
Ethereum (ETH) $ 368.27
ripple
XRP (XRP) $ 0.243373
tether
Tether (USDT) $ 0.999416
bitcoin-cash
Bitcoin Cash (BCH) $ 223.20
bitcoin-cash-sv
Bitcoin SV (BSV) $ 151.06
litecoin
Litecoin (LTC) $ 46.58
eos
EOS (EOS) $ 2.65
binancecoin
Binance Coin (BNB) $ 25.80
okb
OKB (OKB) $ 6.10
tezos
Tezos (XTZ) $ 2.24
leo-token
LEO Token (LEO) $ 1.23
cardano
Cardano (ADA) $ 0.088410
monero
Monero (XMR) $ 91.31
stellar
Stellar (XLM) $ 0.076116
chainlink
Chainlink (LINK) $ 9.86
huobi-token
Huobi Token (HT) $ 4.73
tron
TRON (TRX) $ 0.026538
usd-coin
USD Coin (USDC) $ 1.00
dash
Dash (DASH) $ 69.95
neo
NEO (NEO) $ 23.56
iota
IOTA (MIOTA) $ 0.257868
nem
NEM (XEM) $ 0.109068
zcash
Zcash (ZEC) $ 55.91
maker
Maker (MKR) $ 471.04
paxos-standard
Paxos Standard (PAX) $ 1.00
ethereum-classic
Ethereum Classic (ETC) $ 5.05
vechain
VeChain (VET) $ 0.014065
true-usd
TrueUSD (TUSD) $ 1.00
ftx-token
FTX Token (FTT) $ 3.70
kucoin-shares
KuCoin Shares (KCS) $ 1.15
waves
Waves (WAVES) $ 2.43