Bitcoin (BTC) whales are in the spotlight this week as buying and selling habits divide the Bitcoin price narrative.
New findings from online analytics firm CryptoQuant show that derivatives investors are leading the way when it comes to Bitcoin revolutions.
‘Sick’ BTC Price Index Prefers Bulls
The second half of November saw a significant increase in the buying/selling ratio on major derivatives trading platform Deribit, and for analyst Cole Garner, this is a sure sign that price action will react positively in the short term.
“I recently found the ratio between market buy-and-sell of perpetual stocks on the Deribit exchange to be a poor leading indicator,” he commented.
“This is a 30-day WMA. Strong bullish readings preceded every strong uptrend for this rally. And that just hit the bull beast.”
The data correlates with other recent notes from the stock market amid interest in whales, which continues due to a price correction from all-time highs.
Overall, foreign exchange reserves are now at their lowest level in four years, which means there is less BTC on exchanges than at any time since the old record of $20,000 in 2017.
Bitcoin exchange reserves chart. Source: CryptoQuant
Squeeze Bitcoin Trades
However, the back is lined with a set of coins. Their recovery reached its own record this week, which means that whales are providing access to BTC.
Related: “I think BTC is ready” – 5 things to see in Bitcoin this week
The incredibly stable coin index is pointing to the ATH (all-time high). I’m not sure if whales will pull money ahead of market volatility in response to the FOMC statement on December 16, but that’s also one of the uncertainties,” explained Dan Lim, a participant at CryptoQuant.
“For now, we remain cautious until some doubts are cleared.”
Screenshot showing a girl with a stable ransom. Source: CryptoQuant
The US Federal Reserve will meet this week to chart the future of quantitative easing in the form of asset purchases, which could have far-reaching implications for both macro markets and cryptocurrencies.