Bitcoin whales send BTC to futures exchanges in ‘classic’ bottom signal

Bitcoin whales send BTC to futures exchanges in 'classic' bottom signal

Avoiding fallout from positions "putting in a local bottom" has been standard practice for prior BTC price bottoms, one analyst shows.

Bitcoin whales send BTC to futures exchanges in 'classic' bottom signal

Bitcoin (BTC) whales are betting on a rebound as fresh data shows “classic” bottom behavior.

According to on-chain analytics platform CryptoQuant, large-volume investors are moving coins to derivatives exchanges en masse this month.

Analyst: Whales protectin positions “forming a local bottom”

As BTC/USD hit its lowest levels since the end of June, whales were responding kind.

In one of its Quicktake market updates posted on Sep. 7, CryptoQuant analyst Maartunn flagged a marked uptick in the monthly average number of transactions made between spot exchanges and derivatives platforms.

Whales, Maartunn argued, are hedging their losses and transferring funds to use in futures bets.

“A typical thing for local bottoms is a spike on Exchanges to Derivative Exchanges Flow Mean (30d MA). And guess what, that’s happening right now,” he began.

The phenomenon was already in progress prior to the latest BTC price dip.

On Ether (ETH), derivatives exchanges were already seeing increased inflows in the run-up to the Merge event set for next week. As such, ETH markets are currently front-running Bitcoin by almost three months, explains Maartunn.

“The assumption in this thesis is that whales will deposit Bitcoin on derivates exchange to open futures (long) positions and be able to protect their positions forming a local bottom,” the update concluded.

Whalemap additionally reiterated key on-chain support levels in place based on large-volume accumulation in the past. These take the form of $19,000, $16,000 and $13,000.

“Prime time for $BTC,” the Whalemap team wrote in comments as the June lows returned.

Bitcoin volume profile annotated chart. Source: Whalemap/ Twitter

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