U.Today - Renowned on-chain analyst Ki Young Ju, CEO and founder of CryptoQuant, a top-tier analytical platform, shared a counterintuitive "pro tip" for those who are interested in tracking whales (large holders of a cryptocurrency), whose behavior is associated with market moves.
Track BTC whales on low-liquid exchanges, not Binance, CryptoQuant CEO says
In order to detect the most crucial whale-driven deals, Ki Young Ju recommends to pay attention to exchanges with low liquidity deepness. To illustrate this take, he shared some examples of trades from Huobi, BitMEX, ByBit, Deribit and OKX futures trading platforms.All long positions in his analysis were opened in January 2023 when Bitcoin (BTC) moved sideways between $16,500 and $18,000. This period of accumulation then served as a basis for the rally that pushed Bitcoin (BTC) over $31,400.
As displayed by Ki Young Ju, a number of "visible" trades were made by whales in this accumulation period. A Huobi whale managed to long Bitcoin (BTC) at $16,819.
Whales from other low-liquid exchanges also opened longs below $17,000. As such, they are close to having their positions doubled even with zero leverage.
By contrast, should we take the statistics of Binance (BNB), it is almost useless since its trading volume is too high:
By printing time, Bitcoin (BTC) is changing hands at $30,640 on major spot platforms.
No reliable "sell" indicators in Bitcoin (BTC) futures
To reliably identify the behavior of whales, Ki Young Ju recommended to set alerts for Taker Buy/Sell Ratio, or long/short ratio. Once this or that whale opens a long position, it spikes rapidly.At the same time, there is no "reverse indicator" that is secure for displaying bearish sentiment of whales. As they do not close long positions using market orders, this indicator cannot be used for "shorts" detection.
As covered by U.Today previously, the trading session of June 21, 2023, was the most painful for Bitcoin (BTC) bears. Futures traders lost over $100 in positions that were largely "shorts."