Bitcoin (BTC), whales are the focus of attention this week, as both buying and selling patterns split the BTC price narrative.
CryptoQuant’s new findings show that derivatives investors are leading the charge when it comes bullish Bitcoin bets.
“Sick” BTC price indicator favors bulls
The buy/sell ratio on Deribit’s major derivatives trading platform saw a significant increase in the second half of November. This is a sign, according to Cole Garner, that price action will be positive in the near future.
He commented, “I just discovered that the market buys and sells of perpetuals on Deribit Exchange are a sick leading indicator.”
This is a 30-day WMA. Every bullish bullish price trend has been preceded by strong bullish metric trends. It just published a monster bull move.
This data is consistent with other recent exchange observations against the backdrop of whale interest continuing through the price correction from all time highs.
More broadly, exchange reserves are at their lowest level in four years. This means that exchanges now have less BTC than ever before the 2017 all-time high of $20,000
Bitcoin exchange reserve chart. Source: CryptoQuant
Fed puts pressure on BTC positions
Stablecoins are the flip side. These redemptions hit all-time highs this week with the implication whales are protecting themselves from BTC exposure.
Related: “I think BTC’s ready” — 5 things you should be watching in Bitcoin this week
“Redeemed Stable Coin Index indicates ATH (All Time High). CryptoQuant contributor Dan Lim said that although it is not clear if whales are taking advantage of volatility to cash out in anticipation of the December 16th FOMC decision, that’s one of the uncertainties.
“So far we are still cautious until some uncertainties will have been resolved.”
Screenshot showing stable redemption spike. Source: CryptoQuant
The United States Federal Reserve will meet this week to discuss the future of quantitative ease in the form asset purchases. This could have wide-reaching implications for crypto and macro markets.