Could BTC Whales Be Baiting Traders?

Thanks to the transparency of blockchain technology, the overall sentiment of investors towards a crypto asset can be easily determined and monitored. By analyzing the actions of Bitcoin whales (large Bitcoin holders), one can deduce possible future bullish or bearish price movement.

Santiment, a behavioral analytics company, claims that large Bitcoin whales are plotting to drive prices up right before dumping their holdings on unsuspecting crypto traders. This is commonly referred to as the “pump and dump” strategy.

Smaller-sized BTC holders (1 to 10 BTC) have been amassing massively since the start of the year, in anticipation of the incoming halving—irrespective of the global pandemic and economic meltdown—according to Santiment. Meanwhile, Bitcoin whales, with 1,000 to 10,000 BTC, were observed to have been strategically reducing their holdings. However, that trend has changed in the past couple of days. Whales are now amassing, which could be indicative that they are preparing to dump their holdings at the top of the price movement.

Whales are doing this because they know a good number of newcomers will be flooding the Bitcoin market to partake in the halving rally. These newcomers will likely be buying from whales.

Bitcoin (BTC) Value Forecast — May 7

Supply Levels: $9,400, $9,500, and $10,000.

Demand Levels: $9,200, $8,800, and $8,000.

In the short-term, Bitcoin remains consolidating and continues to trade between the $9,200 to $9,400 levels. BTC remains in a steady approach towards the key resistance at $9,500 and it is very likely to see a sharp surge if bears do not defend that level.

On the flip side, failure to break the resistance could cause BTC to break out of its current trend and head downwards to the support lines.

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