Bitcoin (BTC) continues to stay below the $32,000 level in the cryptocurrency markets dominated by the downtrend. Bitcoin’s more bearish price action in the narrow gap and the fear of breaking the psychological support price of $30,000 cause many traders to debate whether we are in a bear market. However, one of the popular analysts, Willy Woo, claims that the bull market is not over yet, with an argument he draws attention to.
In the current bull market, we’ve seen a few giant companies printing Bitcoin on their balance sheets, and we’ve also seen whale-sized wealthy investors making large Bitcoin purchases, but there are still those who believe individual investors are driving the trend. One of these believers will be Willy Woo, emphasizing a metric where individual investors continue to buy while whales sell Bitcoin.
According to Glassnode data, Bitcoin whales have sold 4,000 BTC, while retail traders have bought 31,000 BTC in the last 30 days.
Woo commented on the subject as follows:
Whales only lead the market in the short term. On the long-term time scale, I’m talking about whales, dolphins, and sharks that initiate the bull market. Crypto folks rule the middle and end of the bull market.
Big whales sell Bitcoin, small whales buy
According to this view, the whales only manage the long wicks we see on the charts, and this selling pressure is repulsed by the smaller whales, the so-called smaller whales, who manage less BTC but are more numerous. But not everyone agrees, and they think the big whale effect isn’t as low as Woo’s downplayed.
On the other hand, we saw whales flocking to the stock markets this week. The first to attract attention was the transfer of 14,550 BTC to the Binance exchange. Earlier today, 13,003 BTC was transferred to the Coinbase exchange. However, let’s point out right away that this transfer may have occurred from an internal wallet transfer according to the Coinbase fund flow. Rumors are that way.
Another analyst, Ki-Young, who thinks the whale effect is too much, cites the strong selling pressure in July and believes it gives sellers a clear advantage. Young draws attention to the Whale-Exchange ratio. The ratio is now above 85%, and with the ratio remaining at current levels, Whales may continue to move their portfolios to exchanges to sell.
Bitcoin was trading just under $31,500 towards noon on July 17, and the prevailing view in the market is that Bitcoin price remaining below $32,000 risks escalating losses.