SignalQuant2023-12-12

Crypto market as seen through the trend of whales

There is a saying, “Stand on the shoulders of giants”. Although we may be experts in our own fields, we are not experts in every field. Therefore, one of the ways to effectively use the resources given to us in other fields is to seek out the experts in those fields. One of the advantages of coin investment analysis over other assets is the ability to perform ‘on-chain analysis’. Although it may be difficult to identify who they are, we can catch someone moving assets anonymously. In particular, by observing the movements of the whale groups, we can know where the current coin market is located. In this sense, if we look at the trends of the Bitcoin whales, we can see that there is a unique pattern among the whale groups. When we classify the entities that move more than 10,000 BTC as ‘big whales’ and those that move 1,000 to 10,000 BTC as ‘small whales’, we can see that the movement of big whales decreased and the movement of small whales increased when BTC price entered a bullish market. This past bullish market pattern is still ongoing, and if the past pattern repeats, we can assume that the current market clearly keeps on the track of a bullish market.