A Bitcoin whale, i.e. a single investor who holds a large amount of BTC, took away his handsome profit of around $ 54 million after investing in Bitcoin for 2 years. Data from Whalemap at least suggests that the Bitcoin Whale bought nearly 9,000 BTC in the third quarter of 2018. Is this an indication that the Bitcoin price has already reached its high?
Speculations are being made
A pseudonymized trader known as a “Byzantine General” who passed the data said:
“This whale is a legend. Do you see the big bubble around 6,000 in 2018? That’s almost 9,000 BTC that has accumulated there. After 2 years and 2 major surrender events, he finally made a profit.”
The Bitcoin Whale held onto its BTC for almost 22 months and went through two major surrender phases. The Bitcoin price fell twice to below $ 4,000, first in January 2019 and then in March 2020. The investor waited for both phases and finally sold at a Bitcoin price of around $ 12,000.
What does the profit-taking of the Bitcoin whale indicate?
David Puell, an on-chain analyst, presented several key data points on Aug. 16 based on the past 4-year cycle of the Bitcoin price. The data shows that the $ 14,000 level due to Bitcoin whale clusters is a critical one Price point for BTC is. According to Puell, whale clusters are showing many large buyers who bought in the $ 9,000 to $ 12,000 range. Whales that bought for $ 9,000 make relatively high profits, and those who bought the top are at break-even point at $ 14,000.