Bitcoin (BTC) left both long and short traders behind in May and June, but data suggests trading it may be “easier” than many imagine.
According to on-chain analytics resource Whalemap, Bitcoin whales have all but dictated market performance in recent weeks.
Whales help pin Bitcoin at $30,000
In fresh analysis published on June 7, Whalemap researchers showed that BTC/USD local tops and bottoms have coincided with areas of heightened whale activity.
When Bitcoin’s largest wallet entities choose to buy or sell, price reacts accordingly. For those looking to reduce risk trading short timeframes, it may thus suffice to act according to where popular whale levels lie.
“Can it get easier than this?” Whalemap summarized in part of a Twitter post.
Bitcoin whale wallet inflows annotated chart. Source: Whalemap/ Twitter
As Cointelegraph reported, some whales are of more interest than others. Over the past week, one such entity on Binance has been contributing to Bitcoin’s narrow trading range with a series of buys and sells.
“This binance whale has marked every local top/bottom for the last two weeks,” popular analyst Credible Crypto added in new Twitter comments on June 8.
“Been watching him come and go. Accumulating at the lows, capping price at the highs. Most recently filled 2,000 BTC (60 million) at the local lows at 29.2k before this pump we are seeing now.”
That “pump,” just like that from earlier in the week, has been short lived, with BTC/USD plateauing then reversing, losing practically all the gains from its initial uptrend, data from Cointelegraph Markets Pro and TradingView shows.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
“Annoying” stocks correlation keeps pressure on BTC
Zooming out beyond internal factors, meanwhile, optimism remains thin for inflationary macro conditions favoring crypto strength going forward.
While whales keep prices rangebound, Bitcoin’s correlation to stock markets is also frustrating traders.
The correlation with the stock markets is annoying.
— Michaël van de Poppe (@CryptoMichNL) June 7, 2022
Stocks themselves are further unlikely to feel relief in the short term, commentator Bob Loukas admitted on June 7, as monetary tightening worldwide gathers pace.
“Still don’t see macro catalyst (yet) for bottom in equities. As stated before has look of a cyclical bear market that needs more time,” he said.
“Price action on Cycle front confirms, move down into summer months. Been underweight a while, happy to be wrong. Wont fomo a ripping rally.”
Source: Cointelegraph
