Bitcoin Whales Open Massive Long Positions on Exchanges, Indicating Possible Rally
Ki Young Ju, CEO of CryptoQuant, has reported significant movements by Bitcoin (BTC) whales on digital asset exchanges Bybit and HTX, where they have established large long positions at a price of 69,000. This behavior is similar to that seen in August 2023, which preceded a parabolic rally that raised the price of BTC from 25,000 to over 73,000 in just a few months.
Significant Movements and Historical Parallels
Young Ju highlighted these substantial positions as a potentially bullish signal, drawing parallels with patterns seen in 2020. During that period, Bitcoin experienced a prolonged consolidation around 10,000, accompanied by high on-chain activity and significant over-the-counter (OTC) transactions. . According to Young Ju, current market conditions resemble those times, suggesting possible preparation for another significant price movement.
Bitcoin Valuation and Network Health
From a fundamental analysis perspective, Young Ju noted that Bitcoin is not currently overvalued. He referred to the “thermo cap ratio”, a metric that divides Bitcoin's market capitalization by its thermo cap, which represents the weighted sum of mined coins by their creation price, indicating the total cost of investment in the bitcoin network. Bitcoin. This ratio suggests that the level of investment relative to the value of the network is in a healthy state
Recent Whale Activity and Market Implications
Additionally, Young Ju noted the addition of 1 billion in BTC to whales' portfolios this month, which he says is likely being transferred to cold storage outside the market, indicating strong hold sentiment among large investors. . This pattern of accumulation and the movement of significant amounts of Bitcoin into cold storage could be indicative of a bullish outlook on the part of these major market players.
