The Bitcoin Whale indicator detects a multi-month cumulative trend, as BTC focuses on the $67,000 retest

Bitcoin (Bitcoin) A Glassnode indicator shows that the largest investors have been increasing their reserves recently to match the continued price recovery.

Known as “Whale supply shock,” The on-chain indicator represents the ratio between the number of bitcoins held by “whales” and “fish”. Whales represent addresses holding 10,000 BTC to 100,000 BTC, while fish represents addresses holding 0.001 BTC to 1,000 BTC.

The rising whale supply shock readings indicate that whales are accumulating more than fish. Conversely, the decline in the supply shock of whales indicates that fish are accumulating Bitcoin at a faster rate than whales.

BTC whale supply shock and price. Source: Glassnode

In other words, Whale Supply Shock tends to provide “supply locked in the Whales wallet [effect] Dor Shahar, an on-chain analyst at CryptoJungle, said: In tweet November 1.

Correlation between BT price and whale activity

The whale supply shock seems to have been predicting the top of the macro Bitcoin price. For example, two months after the supply of whales reached the session peak, the price of BTC reached nearly $65,000 in April.

This indicator shows The whales began to distribute their coins In fish, correctly predict the upcoming macro peaks and corrections. As a result, the whale supply shock declined, as shown in the chart below.

BTC Whales supply shocks and prices recovered simultaneously. Source: Glassnode

After bottoming out in mid-July, it began to rise, indicating that Whales start to regain Bitcoin holdings Speed ​​is faster than fish. It coincided that Bitcoin rebounded from around USD 30,000 on July 20 and finally reached a record high of USD 67,000 in three months.

Shahar pointed out that this correlation was also evident around February 2020, noting that whales started distributing their BTC “just before ATH”, adding:

“The same phenomenon happened in May 2019. The whales have accumulated to a certain point and the supply they hold has reached a peak. Once again, just before the macro top, they started to distribute tokens.”

The BTC Whales supply shock peaked before the spot price peaked in May 2019. Source: Glassnode

Shahar cited the fractal of the above chart and ruled out that the continued recovery of the whale supply shock ratio is a sign of “a cumulative upward trend over several months.” He also pointed out that Supply held by whales In October, when the price of Bitcoin was around $62,000, it was much smaller than in April. He said:

“[It] It may indicate that the fishing season or supply of whales is generally depleted. “

Bitcoin is technically bullish

As the cryptocurrency recovered from below $60,000 and retested its record high of around $67,000, Shahar’s optimistic outlook for the Bitcoin market emerged.

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In doing so, the BTC price seems to have formed a classic bullish continuation pattern called “Bull flagHaving said that, the price seems to be expected to break through its continuous consolidation range and rise to the height of the previous upward trend, also known as the “flagpole.”

The BTC/USD daily price chart has a potential bullish flag setting. Source: TradingView

Bull Flag’s profit target Over 70,000 USD.

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