Bitcoin Bullish Signal: Whales Are Increasing Their Derivatives Positions


According to on-chain data, whales are transferring Bitcoin from spot exchanges to derivatives, indicating that they are building up their stakes.

On Derivative Exchanges, Bitcoin Whales Build Up Their Positions

Bitcoin whales appear to be moving their crypto from spot exchanges to derivative exchanges, according to a CryptoQuant post.

The key indication here is the “all exchanges to derivative exchanges flow,” which displays the overall quantity of coins transported from spot exchanges to derivative exchanges.

When this metric’s value remains consistently high, it suggests a lot of Bitcoin is being transferred to these derivative exchanges regularly, which might indicate whale behavior.

Low numbers indicate that few coins are traveling in this direction, and they might either be stationary or flowing in the other direction: from derivatives to spot.

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

Bitcoin Whales
The BTC all exchanges to derivatives flow mean vs the price | Source: CryptoQuant

Different places are noted on the graph above depending on whether or not whales seemed to be accumulating at the time.

The indicator showed that the whales were transferring a lot of BTC to derivatives during the green zones when the price was primarily going horizontally.

During the duration of the accompanying chart, the price had always demonstrated a leap up after these periods of accumulation.

However, as the indicator’s value dropped to a very low level, BTC‘s price appeared to have reached a peak, following which it began to decline.

As seen in the graph, the present pattern suggests that whales have just begun another phase of accumulation. This might be optimistic for the price in the future.

Bitcoin Price

Bitcoin’s price is now hovering at $61.5k, up 2.7 percent in the previous seven days. The cryptocurrency has gained 42 percent in the last month.

The chart below depicts the coin’s price movement over the previous five days:

Bitcoin Price Chart
BTC’s price seems to be rapidly plunging down | Source: BTCUSD on TradingView

Bitcoin has been rapidly falling in price in recent days after achieving a new all-time high (ATH) of $67k. At present, it’s unclear which path the currency will go next, but whales appear to be gathering if the spot to derivatives flow means anything to go by. This might help the price recover and pave the stage for greater ATHs.


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