Bitcoin (BTC) Left Long and Short Traders Wrong in May and June, But data suggests that trading the major cryptocurrency may be “easier” than many imagine.
According to the on-chain analysis resource Whalemap, bitcoin whales have pretty much dictated market performance in recent weeks.
Whales Help Fix Bitcoin Price at $30,000
In a new analysis published on June 7, Whalemap researchers showed that the local highs and lows of the BTC/USD pair have coincided with areas of increased whale activity.
When the largest bitcoin wallet entities decide to buy or sell, the price reacts accordingly. For those looking to reduce risk by trading short timeframes, it may be enough to act according to popular whale levels.
“Can it get any easier than this?” summarized Whalemap in part of a post on Twitter.
As Cointelegraph reported, some whales are more interesting than others. Over the past week, one of these entities on Binance has contributed to bitcoin’s tight trading range with a series of buys and sells..
“This Binance whale has hit every local top/bottom for the past two weeks,” added popular analyst Credible Crypto in new comments on Twitter on June 8.
“I’ve been watching how it comes and goes. Accumulating at the lows, capping the price at the highs. He recently bought 2,000 BTC (60 million) at the local lows at $29,200 before this pump we’re seeing now.”
That “pump”, like the one earlier in the week, has been short-lived as the BTC/USD pair has stalled and then pulled back, losing virtually all gains from its initial uptrend.data from Cointelegraph Markets Pro and TradingView show.
‘Annoying’ Stock Correlation Keeps Pressure on BTC
Looking beyond internal factors, optimism remains slim for macroinflationary conditions favoring cryptocurrency strength going forward.
While the whales keep prices in a range, bitcoin’s correlation with stock markets is also frustrating traders.
The correlation with the stock markets is annoying.
— Michael van de Poppe (@CryptoMichNL) June 7, 2022
The correlation with the stock markets is annoying.
Stocks themselves are unlikely to see any short-term relief, commentator Bob Loukas admitted June 7, as monetary tightening around the world is accelerating.
“I still don’t see a macroeconomic catalyst for equities to bottom out. As has been said, it looks like a cyclical bear market that needs more time”, said.
“Price action on the cyclical front confirms this, moving lower in the summer months. I’ve been underweight for a while, and I’m glad I was wrong. I don’t want a big rally.”
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