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Price performance tends to flip bullish four months after peak whale withdrawals from exchanges — and the next cycle is almost here, data shows.
Bitcoin (BTC) investors should buy BTC when whales do one thing in particular — bull runs begin several months later.That was the latest insight from Ki Young Ju, CEO of on-chain analysis resource CryptoQuant, who revealed that when whales withdraw Bitcoin from exchanges, it’s time to enter the market.Analyst: Buy BTC before whale cycle is upUploading two charts comparing Bitcoin’s 2017 and 2019 bull runs, Ki noted that the start of each uptrend came four months after a peak in whale withdrawals.The data came via CryptoQuant’s seven-day moving average whale exchange withdrawals metric.“BUY #BTC when whales send bitcoins out of the exchange,” he summarized in Twitter comments.“The BULL market usually starts four months after the exchange average withdrawal hits year-high.”The hint could well prove timely, coming three months after Bitcoin’s most recent annual withdrawal peak in March. If the trend repeats — amid a slew of other encouraging signs for BTC— a bull market should begin in July.Bitcoin average exchange withdrawals comparison. Source: Ki Young Ju/ TwitterBull trend factors converge for BitcoinAs Cointelegraph reported, other metrics also suggest that Bitcoin is rebounding from a price bottom. Notably, exchange reserves are now back near their lowest since December 2018, when BTC/USD traded at $3,100.Miners are also selling less BTC, having briefly sold more than they earned in the aftermath of May’s block subsidy halving.More broadly, investors have spent 2020 accumulating BTC, with 90% of days seeing net asset increases.Last week, Ki described how whales tended to wait for quiet periods on exchanges to sell coins, potentially to attract investor attention to their actions.