Understanding Old Bitcoin Whales’ Profit-Taking Patterns
According to CryptoQuant CEO Ki Young Ju, old whales have a history of taking profits during bull markets. This profit-taking behavior brings new capital into accumulation addresses, consequently increasing realized prices. Accumulation Addresses are Bitcoin wallets with specific criteria, such as no history of selling, a balance of at least 10 BTC, and no connection to miners or centralized exchanges.
- Old whales sell during bull markets, bringing new capital into accumulation addresses
- Accumulation Addresses are wallets that do not sell and have specific criteria
- The behavior of accumulation addresses reflects HODLers who buy more and do not sell
Realized Price Metric and Market Trends
Young Ju uses the Realized Price metric to analyze the cost basis of investors in accumulation addresses. If the realized price is higher than the spot price, it indicates unrealized loss in the cohort, and vice versa. The trend in realized prices over the past decade suggests that HODLers were purchasing during previous bull runs, potentially absorbing profit-taking from other market entities. Historically, this profit-taking phase has lasted around 18 months in previous cycles.
- Realized Price metric analyzes cost basis of investors in accumulation addresses
- HODLers likely bought during bull runs, increasing their average cost
- Profit-taking phase historically lasted for about 18 months in past cycles
Current Bitcoin Cycle and Price Analysis
Recent data indicates an uptrend in the Realized Price for Bitcoin Accumulation Addresses, suggesting a resurgence in profit-taking by old whales. This trend has persisted for approximately four months, with a potential remaining duration of around fourteen months based on previous cycles. The analysis points towards a continuation of the current Bitcoin bull cycle possibly extending into mid-2025.
- Current uptrend in the Realized Price for Bitcoin Accumulation Addresses
- Potential continuation of profit-taking phase by old whales
- Analysis suggests Bitcoin bull cycle could extend into mid-2025
Bitcoin Price Update
Bitcoin has approached the $70,000 mark following a recent 3% surge, indicating ongoing market momentum.
Hot Take: Crypto Market Insights
As a crypto enthusiast, understanding the behavior of old whales and accumulation addresses can provide valuable insights into market trends. By analyzing metrics like Realized Price, you can gain a better understanding of investor sentiment and potential price movements in the cryptocurrency space. Stay informed and keep an eye on key indicators to navigate the dynamic crypto market effectively.
Sources:
– CryptoQuant – Ki Young Ju
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