“Bear Market” is a trending term in the cryptocurrency market lately. Many analysts use the term to make forward-looking predictions about the market, keeping Bitcoin in focus. Some investors and metrics analysts joining this bandwagon add charts to their tweets to make their predictions look valid.
Along with the active market decline, it has been suggested that some major moves have caused the market to be negatively impacted. For this reason, whales are now attracting everyone’s attention.
Are whales the culprit for the bear market?
CryptoQuant CEO Ki-Young Ju recently posted a series of tweets analyzing current market conditions. The crux of his analysis was that large volumes of sales have been observed in the market recently. Ki-Young Ju noted the changing positions of the whales. Whale sales have increased significantly in the last 24 hours. Adding this to the current Bitcoin movement, he confidently declared his determination:
Ki-Young Ju, “I hate to say it but the BTC bear market seems to be confirmed.” said.
A similar situation was observed in 2017 when 5 wave whale sales took place and even then it did not lead to a “bear market“. The whale sale, which came after the bullish phase in 2017, was not observed to be threatening as it came just after the strong retail sale that increased the liquidity in the stock markets.
This caused the price increase as it strengthened immediately after the acquisition. The whale selling wave of 2017 caused BTC to take firm steps forward on the price chart. This active wave can also be interpreted as the whales making a profit in the short term.
In response to Ki Young’s aforementioned tweets, analysts such as Michael van de Poppe and Kevin Sekniqi said:
According to Michael van de Poppe, Ki Young’s analysis is “a pretty bad metric. Statistically, it doesn’t give much information”
Kevin Sekniqi said, “To answer the question that brought you here, no Bitcoin is currently in a bear market and no indicator can accurately predict it. Observing price action and evaluating real metrics can help you identify short-term action. Investors should follow a similar observation and evaluation model when determining their positions regarding BTC trading,” he responded to Ki Young’s comment.