Bitcoin whales could prevent BTC price first monthly loss of 2023 through this move
- Bitcoin network’s large wallet investors accumulated BTC throughout May.
- BTC supply on exchanges nosedived from 1.33 million to 1.29 million since the beginning of May.
- While BTC is headed towards its first monthly loss of 2023, whales could fuel a recovery in the asset.
Bitcoin price is inching towards the first monthly loss of 2023. At press time, BTC price is 4.4% below $29,233, its price on May 1. If BTC fails to regain lost ground, the asset is in for its first monthly loss of the year.
Bitcoin network’s large wallet investors could potentially fuel a recovery in BTC price before it charts its first negative month in 2023.
Also read: Bitcoin price retreats as US core PCE inflation comes hotter than expected
Bitcoin whale accumulation and declining exchange supply
Typically, accumulation by large wallet investors and a decline in the supply of the asset across cryptocurrency exchanges are both considered bullish signs for BTC price. Throughout May, whales across three segments continued scooping up Bitcoin tokens and the supply on exchanges declined by nearly 3%.
Based on data from crypto intelligence tracker Santiment, whales picked up the pace of their accumulation on May 24.
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BTC whale accumulation
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Bitcoin supply on exchanges
The declining supply implies easing selling pressure on the asset across cryptocurrency exchange platforms. This leaves room for recovery in BTC ahead of the monthly close.
While Bitcoin is headed for its first monthly decline, whales are positioning themselves to push BTC price higher.
Delta based trading systems analysts at Skew (@52kskew) on Twitter identified how whales are influencing Bitcoin price. Whales are bidding and using the market positioning to push holding low-time frame Exponential Moving Averages (LTF EMAs) higher.
Traders with both short and long positions in Bitcoin are apeing into whale movements.
tldr; Whales bidding & using market positioning to push the market around
— Skew Δ (@52kskew) May 29, 2023
Holding LTF EMAs = higher
Whales are, therefore, in a position to influence retail traders with their movements and fuel a recovery in Bitcoin, acting as a bullish catalyst for BTC price.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
