A popular crypto analyst is identifying big players in the crypto world as likely being responsible for the market’s recent rip to the upside.
In a new strategy session, Nicholas Merten tells his 514,000 YouTube subscribers that whales and other institutional investors not selling their Bitcoin, despite macroeconomic and geopolitical uncertainty is the catalyst behind BTC’s sudden rise in price.
The analyst says,
“Over the past couple months, there’s been so many scares around the macro environment. The Federal Reserve increasing interest rates and initiating quantitative tightening to curb inflation. The war going on between Ukraine and Russia. Potentially another Covid wave.
All these different topics that got all these people pessimistic made people think that the whales, the large investors, the institutions were going to sell their positions.
On the contrary, we didn’t see any major whales dumping. In fact, we saw accumulators continue to either buy more or hold. That is proven here through the 1-year HODL wave.”
The 1-year HODL wave metric keeps track of Bitcoin that has remained dormant for over a year.
The Data Dash host goes on to explain that the whales have been loading their crypto bags over the last six months while short-term and leveraged traders have caused the up-and-down price action.
“We saw during this time a nearly 10% increase from back in September and October [of 2021] all the way towards where we are here at the end of March.
It’s been nothing but a couple of months of the whales buying more and holding their positions.
All the volatility we’ve been seeing in the market is likely short-term traders and leveraged traders getting liquidated in either direction.”
Merten concludes his analysis by reasserting his long-held opinion that despite Bitcoin’s 50% decline from an all-time high above $69,000 back in November, BTC is not in a bear market.
“These trends are driven by supply contractions. When we see those higher lows in price like we’ve been seeing over the past year, year and a half, it’s a sign that the trend is not dead, and that this isn’t a bear market. Plain and simple.
If we take a look again at the [1-year HODL] model, it’s got a lot of historical relevance. But important to consider as well is that there are a lot of other means to gauge this kind of reading around supply and demand. It’s just a benchmark.”
At time of writing, Bitcoin is up 5.91% and trading for $47,497. It’s also up 16.2% from a week ago when it was priced at $40,842.
BTC was last above the $47,000 level back in early January before tumbling to under $33,000 on January 24th.
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Source: https://dailyhodl.com/2022/03/28/confident-crypto-whales-behind-bitcoin-btc-explosion-according-to-analyst-nicholas-merten/