Crypto whales exiting the market? 395,903 $ETH spotted leaving coinbase! Could the market be crashing or is this another part of the market cycle? Why are so many coin prices tumbling down?
Crypto Whales Pull Out Massive Amounts of $ETH
Every time a crypto whale moves, splashes are felt within the market. However, it’s not always common that one would see crypto whales owning a massive amount of 395,903 $ETH all exiting the market during a certain short period of time! Could there be a reason for their exit and will cryptocurrency permanently start to be bearish?
CryptoQuant.com shared a chart which showed massive amounts of Ethereum leaving their platform as the currency’s price yet again drops to what seems to be lower than it was just a few months ago. $ETH HODLers celebrated when the price hit $4,000 but now, the future of some $ETH holders might either look quite shaky or maybe just part of the bigger picture.
Cryptocurrency Market Cycle
The thing about markets is that it always changes but this does not mean that there are no patterns. Patterns are what helps traders make calculated decisions as to when to invest in a certain asset. Could cryptocurrency be showing patterns that it is going down?
Before anything else, it is important to understand that it isn’t really altseason anymore since alt coins are dropping massively as well. It looks more like an exit season or HODL with safe assets season. There is a market cycle to follow and it now looks like investors are in the red season.
This is the Bitcoin market cycle:
1. Investors buy Bitcoin when the price is still at a low.
2. Bitcoin goes up and investors buy the dip.
3. People start getting excited due to the bullish price and buy because of FOMO or Fear of Missing Out.
4. Bitcoin starts distributing and hits its all time high or at least near its all time high. This is where investors start to sell massive amounts of Bitcoin.
5. Bitcoins start to go down and people start panicking. This is where Shorts and Bounces are at play
6. Due to panic, some people sell even more of their Bitcoin bringing the price even lower.
7. The price of Bitcoin starts to go down even more as people start to panic sell.
8. Bitcoin sits at the bottom and when the depression levels out, bulls start accumulating once again.
9. The process repeats itself.
Crypto Market Cycle Simplified
According to CryptocurrencyFacts, there is a simpler way of terming the market cycle which ends up in much fewer steps.
2. Greed (bullish run)
4. Fear (bearish run)
The market cycle yet again repeats itself depending on the timeline of the asset or coin. Some crypto cycles go on for 10 years, 1 year, 1 month, or even a few days. The concept, however, remains the same. Currently, the price could be down because of Fear as the market hits a bearish run.
Related Article: Crypto 101 | How to Spot a Pump and Dump and Is It Dangerous?
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Written by Urian B.
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