BTC whales took profits while others were chasing highs
OKEx research revealed that during the period growth course BTC big players were selling it
Retail traders reacted to Bitcoin’s rise with purchases
Professionals Catch BTC Falling On Thanksgiving Day
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Experts from the OKEx team analyzed the trading patterns of the BTC / USDT pair from August to November 2020 of the year and found that retail traders were losing to whales.
In the published research analytics exchanges OKEx decided to study characteristics such as trade position sizes and order direction (buy or sell). Using these parameters, they tried to compare how different categories of participants market reacted to bullish bitcoin race in August-November 2020.
Bitcoin traders were divided into four groups depending on their trading volumes:
- < 0.5 BTC
- 0.5 < 2 BTC
- 2 < 5 BTC
- ten+ BTC
And what happened?
According to the data, received in collaboration with analytical blockchain–company Kaiko, retail traders actively bought up currency on growth, until BTC has not reached about $ 15 000. After of this retailers have joined buyers.
Until the end of November, bitcoin purchases prevailed in the “less than 2 BTC” category.. but players who turned positions for amounts exceeding 2 BTC were more likely to act as sellers. Given below charts clearly reflect this trend:
However, it is noteworthy that at the end of November, the holders of positions in the “2+ BTC” category again began to show interest in buying bitcoin. These purchases took place against the backdrop of an aggressive market correction that began in district Thanksgiving – When more small traders were afraid to return to market
See also: What Bitcoin and Turkey have in common on Thanksgiving
Moreover, they do not take into account not only statistics from other exchanges, but also – more importantly – over-the-counter (OTC) data. Between themes they represent an important segment of professional and institutional trading. It is worth remembering that the execution of OTC orders sometimes can don’t go away one day due to Togo, that large orders may split up. This fragmentation also makes data collection difficult..
Finally, the whales themselves, too, are wary of over-aggravating the markets with overly large transactions. Therefore, even when trading on exchanges, they often practice a similar breakdown of large amounts into smaller orders, so as not to confuse the current market dynamics..
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