Bitcoin whales send BTC to futures exchanges in 'classic' bottom signal

Avoiding fallout from "setting a local bottom" positions has been common practice for past BTC price bottoms, analyst says .

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Bitcoin (BTC) Whales Bet on a Rebound as New Data Shows 'Classic' Bottom Behavior.

According to on-chain analytics platform CryptoQuant, high-volume investors are transferring coins to derivatives exchanges in droves this month.

Analyst: Whales protect positions 'forming local bottom'

As BTC/USD hit its lowest levels since late June, the whales reacted kindly.

In one of his Quicktake Market Updates published on September 7, CryptoQuant analyst Maartunn reported a marked increase in the monthly average number of trades made between spot exchanges and commodity platforms derivatives.

Whales, Maartunn explained, cover their losses and transfer funds to be used in futures betting.

"A typical thing for local funds is a spike on the average trade flow to derivatives exchanges (30d MA). And guess what, it's happening right now," he began.

The phenomenon was already underway before the last BTC price drop.

On Ether (ETH), derivatives exchanges were already seeing an increase in inflows ahead of the Merge event scheduled for next week. As such, ETH markets have currently been leading Bitcoin for nearly three months, says Maartunn.

“The assumption of this thesis is that whales will deposit Bitcoin on derivatives exchanges to open futures (long) positions and will be able to protect their positions by forming a local fund,” the post concludes. updated: