• Bitcoin Bullish Signal: Whales Are Increasing Their Derivative Positions

  • According to on-chain data, whales are transferring Bitcoin from spot exchanges to derivatives, indicating that they are consolidating their positions.

    Bitcoin Whales Amass Positions on Derivative Exchanges

    Bitcoin whales appear to be shifting their crypto holdings from spot exchanges to derivative exchanges.

    The “all exchanges to derivative exchanges flow mean” is the relevant indicator here, as it shows the total amount of coins transferred from spot exchanges to derivative exchanges.

    When the value of this metric remains consistently high, it indicates that a large amount of Bitcoin is being moved to these derivative exchanges on a regular basis, which may indicate whale activity.

    Low values would imply that not many coins are moving in this direction, and they could either be stationary or moving in the opposite direction: from derivatives to spot.

    Here’s a graph that shows the trend that this indicator has followed over the last few years:

    The above graph has different regions labeled based on whether or not whales appeared to be accumulating at the time.

    The green regions were where the price was mostly moving sideways and the whales were sending a lot of BTC to derivatives, according to the indicator.

    Following these accumulation periods, the price had always shown a jump up during the period of the above chart.

    However, once the indicator’s value became extremely low, BTC’s price appeared to have reached a peak, after which it dipped.

    As shown in the graph, the current trend suggests that whales have just begun another phase of accumulation. This could be a positive sign for the price in the future.

    Bitcoin Price

    At the time of writing, the price of Bitcoin is hovering around $61.5k, up 2.7 percent in the last seven days. The cryptocurrency has gained 42 percent in the last month.

    The chart below depicts the coin’s price trend over the last five days:

    Bitcoin has dropped sharply in the last few days after reaching a new all-time high (ATH) of $67k. It’s unclear which path the coin will take next, but if the spot to derivatives flow mean is any indication, whales appear to be gathering. This could help the price recover and set it up for higher ATHs.

    What's your reaction?