Santiment, a market intelligence platform, has released new data indicating that a key indicator for Bitcoin price rallies is currently showing a bullish signal. According to Santiment, when crypto wallets holding at least 10 BTC start accumulating, the price of BTC tends to rise. Conversely, when these wallets sell, it often leads to extended bear markets.
Santiment emphasizes that the activity of deep-pocketed crypto investors and the price of digital assets are closely correlated. They observe that price reversals often occur when there is a spike in whale transactions (transactions involving large amounts of BTC). If prices are increasing during a whale transaction spike, it suggests that prices are likely to correct and decline. Conversely, if prices are decreasing during a whale transaction spike, there is an increased likelihood of prices bouncing back and rising.
The platform also acknowledges that while many whale investments are driven by genuine reasons such as excitement about the technology or the anticipation of increased exposure, there are instances where whales may pump the market without a clear reason.
At the time of writing, Bitcoin is trading at $67,383, experiencing a 1.6% decrease in the past 24 hours.
Disclaimer: The opinions expressed in this article are not investment advice. Investors should conduct their own research before engaging in high-risk investments in Bitcoin, cryptocurrency, or digital assets. Transfers and trades are done at one’s own risk, and any losses incurred are the responsibility of the individual. The article does not recommend buying or selling any cryptocurrencies or digital assets, nor does it serve as investment advice. Please note that the article participates in affiliate marketing.
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