Since the conclusion of the U.S. elections on November 5, Bitcoin's whale activity has significantly increased, with the quantity of Bitcoin transferred to exchanges through active whale addresses rising.
However, a CryptoQuant analyst named Onatt revealed in a recent post on the QuickTake platform that contrary to expectations, the profit-taking activities of these large holders have not shown significant growth.
Whale activity indicates market stability but also signals potential risks.
CryptoQuant analyst Onatt's report reveals this whale activity, emphasizing that despite the increase in Bitcoin inflows to exchanges, there is a lack of immediate sell-off pressure.
Analysts wrote that the whales do not seem to be liquidating their holdings, but rather adopting a 'wait-and-see strategy.' They appear to be using Bitcoin for purposes such as hedging, over-the-counter trading, or collateral.
Although this approach is beneficial for market stability, Onatt suggested that 'these trends should be closely monitored to predict potential impacts on the market.'
Onatt's analysis provided more details on this development, indicating that the adjusted Spent Output Profit Ratio (SOPR) metric tracking profit-taking activities has not shown significant changes.
Historically, significant inflows of Bitcoin to exchanges often accompany increased sell-off pressure, but the current situation deviates from this trend. Instead, these movements may reflect a strategic approach by whales preparing for a potential market shift.
Onatt also pointed out that while the risk of a sell-off seems low in the short term, the continued influx of funds into Bitcoin exchanges may signal future volatility.
Bitcoin market performance
Bitcoin has appeared to be stagnant since its trading price exceeded $95,000. Over the past few weeks, Bitcoin has struggled to rise further from this price level, but despite bears trying to push it below $95,000, it has successfully maintained this price level.
In the past week, BTC has been relatively stable, increasing by only 2.5%, while in the last 24 hours, the asset has slightly decreased by 1.2%, with the current trading price being $95,837 as of the time of writing.
Interestingly, there has been a contrary trend regarding Bitcoin's daily trading volume. Despite a slight decline in Bitcoin's price, the daily trading volume of BTC has significantly increased from below $60 billion on November 29 to now $94.5 billion.
Given Bitcoin's current price trends, it is worth noting that the increase in BTC trading volume over the past few days may be due to sell-offs. According to renowned analyst Ali on X, Bitcoin has formed a head and shoulders pattern on its 1-hour chart, currently indicating a correction to the $90,000 level.
#Bitcoin $BTC may be forming a head and shoulders pattern, which could trigger a price correction to $90,000!