Since April 10th, the short-term taker buy sell ratio has been trending up. This means that there are more buy volumes then sell volumes for BTC. Normally, when this ratio trends up then BTC price normally responds by moving upward.
We can see this by observing the chart below.
However, the current BTC price hasn’t responded to the increase in buying volume yet. If this ratio continues to increase, then BTC price may have the potential to move upward.
Now let’s look into who is buying
In the chart, it is BTC’s price USD and UTXO BTC supply distribution 1k-10k BTC. I call this group Whales. We can also say that this group are institutions because normally retail doesn’t have this large of a balance.
In this chart, Once BTC’s price dropped to between $39–41k USD, we can see the supply of this distribution group start to trend upward.
This means that Whales have been buying BTC at around the 39–41k price level. Since April 10th, Whales holding between 1k-10k BTC have been buying more BTC. They have accumulated over 40,000 BTC within this timeframe. That is worth $1.6 Bil USD!
However, when we look at the chart behind the identified square, when BTC’s price moved upward, we do see the UTXO BTC move downward indicating that the BTC has been moved, spent or possibly sold.
I believe whales are buying what they believe is a good price to buy at and selling when gaining 10–20% ROI during short timeframe. They’re using this to dump their bags.
However, this could lead to potential short term trading opportunity.
IMPORTANT! Keep in mind that FOMC meeting is coming early May. I wouldn’t be surprised if market volatility increases towards the end of the coming week.
My overall market sentiment for the rest of the year is still bearish.
This article is not financial advice and is my interpretation from my analysis.
