Trend Reversal Indicated by Whale Activity – Chung’s Weekly Digest

As Bitcoin continues to rise, the aggressive buying by whales could signal a market cycle bottom.

Observe the Whales

When Bitcoin ($BTC) convincingly recaptured $41k, the crypto market awoke from its winter hibernation. Will Clemente tweeted on January 28 that on-chain data reveals whales with addresses holding more than 1,000 Bitcoins are accumulating, as we reported in our last digest.

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Bitcoin and Ethereum ($ETH) staged a dramatic run forward on Friday, breaking through barrier and rekindling market optimism. In the coming days, two bullish scenarios could play out. A dip below $38k and a bounce off its previous resistance turned support, or a prolonged consolidation near $41k. Above $41k, the consolidation will produce a fresh floor of resistance.

The last time the whales gathered was in August of last year. In early November, Bitcoin was trading at $44,000, its all-time high. The same scenario appears to be playing out.

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Influencers in the cryptosphere on social media

Retail investors learning about cryptocurrencies for the first time are likely to come across YouTube channels or Tik Tok accounts with headlines like “The 100x Undiscovered Crypto Gem” or “Emergency, the FED Has Just Made an Unexpected Announcement!”

These materials are not intended to educate or transmit accurate information. Instead, it targets two of humanity’s worst flaws: greed and fear. Making money in the cryptocurrency market requires the same level of effort as in the regular market.

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Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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