This bitcoin whale sold BTC for $ 12,000 after two years of HODLing

Bitcoin whale – an individual investor who owns a large amount of BTC – took a profit after two years. Whalemap data suggests that the whale bought nearly 9,000 BTC in the third quarter of 2018.

A trader known as the “Byzantine General” who shared the data said:

“This whale is a legend. See that big bubble around 6k in 2018? That’s almost 9k BTC that was accumulated there. He finally took profit, after 2 years and 2 major capitulation events.”

The whale held BTC for almost 22 months, even during the two main surrender phases. Bitcoin dropped to less than $ 4,000 twice, first in January 2019 and then in March 2020. The investor waited in both periods and eventually sold for about $ 12,000.

Bitcoin whale has taken profits, what does that suggest?

Between $ 12,000 and $ 14,000 large groups of whales will sharpen. At $ 12,000, many whales are either in profit or without a loss, which could probably motivate whales to sell.

Whether this shows that whales are wary when Bitcoin reaches its peak remains unclear. Whales, due to the size of their holdings, monitor liquidity. If they feel that there is enough liquidity to sell, then as a result of growing retail activity, they are likely to sell.

Therefore, the sale of whale does not necessarily indicate that Bitcoin has reached its peak. It could be argued that this increases the chances of consolidation in the short term. But until BTC falls below key support levels, it is premature to mark the peak. It is also difficult to estimate how many of the 9,000 BTC whales sold.

The reason that some whales want to collect profits at the current level may be the relatively large spot volume of Bitcoins. According to another trader known as Bitcoin Jack, the market remains “awkwardly” driven by the spot market. He said:

“Market remains awkwardly spot driven for now. Market remains relatively high on-chain dominance Price expansion is therefore imminent again—direction unclear but low derivatives vs spot and spot exchange vs onchain dominance indicates we have not seen an irrational top.”

When the market is strongly driven by the derivatives market, whales have less liquidity to search and smaller moves could cause large price movements.

Expectations in the near future

In the short term, traders remain mixed about Bitcoin sentiment. Michael van de Poppe, a trader at the Amsterdam Stock Exchange and an analyst at Cointelegraph Markets, says BTC could fall to as much as $ 10,000 if it loses $ 11,450 support.

After an almost threefold increase in prices, the consolidation phase could strengthen the dynamics of Bitcoins in the longer term.

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