October provided the much-needed kick-start for the Bitcoin and Ethereum rallies. Both assets have hit local highs in the past few days.
However, at the time of writing, Bitcoin is trading over $ 60,000 while Ethereum is changing hands at $ 3.7,000. In fact, the prices of the two leading coins appear to be moving further south, suggesting a lack of momentum in their respective markets.
Bitcoin’s major rallies in the past have been led by whales, and it looks like the same is going to happen at this time. In the last 5 weeks alone, the number of Bitcoin addresses with 100 to 1,000 BTC has increased by more than 250. This results in a cumulative slope of 2%.
Given the large number of coins, these addresses are often considered representative of whales. From the graph above, it can be seen that the majority of whales survived the previous market correction. In contrast, there are only a few large HODLers for sale.
Plus, the number of addresses has grown 2% faster than other periods in the past, which is a pretty good sign.
Additionally, according to CryptoQuant data, the relative size of the top 10 inflows relative to total inflows on all exchanges has decreased since the last week of September. Whenever that number goes down, it shows a decrease in whale selling pressure.
On the other hand, the number of 100-1k ETH token HODL addresses related to Ethereum remained stagnant over the same 5 week period.
It should also be noted, however, that the current number of addresses is reminiscent of the May numbers – just as Bitcoin’s current numbers are correct for April. Whales rarely supported Ethereum in bull phases in the recent past. So the currently unattractive numbers are nothing to worry about.
Additionally, Bitcoin and Ethereum’s foreign exchange reserves are pretty close to their all-time lows at press time. Hence, it can be said that new Bitcoin whales have started buying.
If this continues, they could reverse the trend on the short term price chart. Ethereum, on the other hand, will have to rely more on retail commitment to accomplish the same feat.
In general, whale actions will be more useful for Bitcoin than for Ethereum.
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According to Ambcrypto