The verified pseudonymous analyst ‘eth whale hunter said in a ‘Quicktake’ on the crypto market analytics platform that whales and funds tend to transmit their BTC to derivatives exchanges to create or cover long positions during capitalization events.
Following these whales can provide investors with information about the market’s bottom. The analyst claims that watching the Bitcoin Exchange Inflow/Outflow Mean indicator in particular “is a credible long-term bottom indication.” This indicator’s values to watch for are BTC Inflow larger than 2.5 BTC and Outflow greater than 10 BTC. These levels represent BTC’s local bottoms. He did, however, advise traders to employ additional on-chain indicators such as Net Unrealized Profit/Loss (NUPL), Puell Multiple, Market Value to Realized Value (MVRV), and BTC Hashrate, adding that investors can make alternatively dollar cost average (DCA) into the market.
The whale loss mitigation pattern has been established as market whale activity has increased. Whale investors have been blamed for the significant decline in Bitcoin exchange reserves, which have plummeted to 8.7% of the total circulating quantity. Similarly, the investigation identified a single whale that spent over $500 million BTC purchases since September, adding over 5,000 BTC during that time.