Bitcoin (BTC) outperformed both long and short traders in May and June, but data suggests it may be “easier” to trade than many believe.
Bitcoin whales have all but dictated market performance for the past few weeks, according to on-chain analytics resource Whalemap.
Whales Help Pin Bitcoin to $30,000
In a new analysis published on June 7, researchers at Whalemap showed that BTC/USD’s local highs and lows coincided with areas of heightened whale activity.
When Bitcoin’s largest wallet units decide to buy or sell, the price reacts accordingly. Therefore, for those looking to reduce risk when trading short timeframes, trading on where the popular whale levels lie may be enough.
“Is there an easier way than that?” Whalemap summarized in part of a Twitter post.
Annotated chart of Bitcoin Whale wallet inflows. Source: Whalemap/Twitter
As Cointelegraph reported, some whales are of more interest than others. Over the past week, one such entity on Binance has contributed to Bitcoin’s tight trading range with a series of buys and sells.
“This Binance whale has marked every local high/low for the past two weeks,” popular analyst Credible Crypto added in new Twitter comments on Jun. 8.
“I’ve seen him come and go. Accumulation at the lows, price limitation at the highs. Last 2,000 BTC (60 million) was filled at the local lows at 29.2,000 before this pump we’re seeing now.”
This “pump,” like that of earlier in the week, was short-lived, with the BTC/USD plateau then reversing and shedding virtually all gains from its initial uptrend, data from Cointelegraph Markets Pro and TradingView shows.
BTC/USD 1 Hour Candlestick Chart (Bitstamp). Source: TradingView
“Annoying” stock correlation keeps BTC under pressure
Zooming out beyond internal factors, optimism remains low on inflationary macro conditions favoring future crypto strength.
Related: BTC price is on its longest losing streak in history – 5 things to know about Bitcoin this week
While whales keep prices range-bound, Bitcoin’s correlation with stock markets is also frustrating traders.
The correlation with the stock markets is annoying.
— Michaël van de Poppe (@CryptoMichNL) June 7, 2022
Stocks themselves are also unlikely to see relief in the short term, commentator Bob Loukas conceded on June 7 as global monetary tightening gathers momentum.
“I don’t see a macro catalyst for the bottom in stocks (yet). As mentioned, it looks like a cyclical bear market that needs more time,” he said.
“Price action on the cycle front confirms that we are descending into the summer months. Was underweight for a while, luckily wrong.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.
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