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Whales Buying and Small Fish Selling

Whales with over 10,000 BTC keep accumulating as those with less than 1,000 BTC generate selling pressure.

  • The biggest whales in the market have been accumulating Bitcoin intensely for the past month.
  • Addresses with less than 1,000 bitcoins have generated selling pressure for two weeks.

Whales vs. Small Fish

Currently, there is an opposite behavior between investors with more bitcoins (BTC) and those with less. Precisely, the addresses with more than 10,000 bitcoins (BTC) have been buying more with intensity since a month ago, according to Glassnode Explorer. People know these players as the “biggest whales in the market.

Meanwhile, addresses holding less than 1,000 bitcoins have been ramping up selling pressure for nearly two weeks, according to the explorer. You can see this in the dark red chart below while the market’s largest whales continue in blue, reflecting their accumulation level.

Whales and small fish behave the opposite when buying BTC
Whales and small fish behave the opposite when buying BTC

A score closer to 1 (blue) reflects that, over the past month, many participants have accumulated BTC. In contrast, a score closer to 0 (red) indicates that, over the past month, many participants have not bought more or even sold their BTC.

Bitcoin Accumulation Trend since June 2022
Bitcoin Accumulation Trend since June 2022

The low demand from smaller investors partly reflects why the cryptocurrency price could show increased bull strength. BTC touched $31,000 four weeks ago, its highest price in 10 months, and has been making lower and lower highs ever since. Bitcoin is trading at $27,700. And according to analysts, the price may deflate to $25,000 if demand does not increase.

What is a Bitcoin whale?

We use the term Bitcoin whale to describe an individual or entity that owns a significant amount of Bitcoins. These individuals or entities are the most influential players in the Bitcoin market. They possess the ability to move the market price with their large transactions. The term “whale” comes from the gambling world, where players call whales to the high rollers. In the Bitcoin world, these whales are often early adopters of the cryptocurrency who have accumulated many Bitcoins over time. It is very important to track Bitcoin Whales over time.

Bitcoin whales can significantly impact the market by trading large amounts of Bitcoins at any given time. When a Bitcoin whale decides to buy or sell a large amount of Bitcoins, it can cause the market price to fluctuate rapidly. With their huge trades, whales impact the supply and demand of Bitcoins. While many Bitcoin whales threaten the market’s stability, they can also benefit the ecosystem. For example, suppose a Bitcoin whale decides to hold onto their Bitcoins instead of selling them. In that case, it can stabilize the market by reducing the supply of Bitcoins for trading.

Overall, Bitcoin whales are an essential part of the Bitcoin market. While their actions can have a significant impact on the market, they can also be beneficial to the ecosystem as a whole. As the Bitcoin market continues to grow and develop, how these whales shape the market will be engaging. Whales can alter price evolution drastically, but something prevents huge sales or buys. This problem is slippage, which occurs when a big chunk of an asset appears in an order book. A big order devours different price ranges inside the order book. The price starts to move against the actor that placed the big trade.

What is trading slippage?

Trading slippage is a term used in finance to describe the difference between the expected price of a trade and the actual price at which the trade executes. This difference can happen for many reasons. Variable market conditions, delays in order processing, and other factors can affect the price of an asset. Slippage occurs when the price at which you want to buy or sell an asset differs from the price at which the trade executes. The result is unexpected losses or missed opportunities for profit. High-frequency trading can take important advantages using slippage management.

For example, let’s say you want to buy a stock at a specific price, but by the time your order is processed, the price has gone up. This price mismatch means you end up paying more for the stock than you had intended, resulting in slippage. Similarly, if you want to sell a stock at a specific price, but the price drops before your order is processed, you may end up selling the stock for less than you had intended, resulting in slippage.

Slippage can be particularly problematic for traders relying on fast and frequent trades, such as day or high-frequency traders. In these cases, even a small amount of slippage can increase over time and significantly impact profitability. To minimize the risk of slippage, traders can use various strategies. They can set limit orders to trade at a specific price, using stop-loss orders to automatically sell at a particular price if the asset’s value drops. They also need to monitor market conditions carefully.

Overall, trading slippage is a critical concept to understand for anyone involved in buying and selling assets. By being aware of the possibility of slippage and taking steps to mitigate its impact, traders can better manage their risk and improve their chances of success.

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