Bitcoin whale buying weakens, echoing pre-Terra 2022 pattern

Binance spot whale trading flows are showing a pattern similar to the 2022 bear market, raising the risk of further market shocks, according to crypto analyst and content creator Mignolet. Mignolet said BTC’s risk-reward profile has favored long positions over shorts since a sharp rebound in late August. At the same time, Mignolet said the market has not gone through enough accumulation for a full-fledged uptrend, meaning a meaningful rally could still take considerable time. Mignolet added this was why all BTC holdings were sold in late September. Mignolet also said buying by Binance spot whales has steadily weakened since early October. In 2022, whale cumulative volume delta, or CVD, moved sideways within a range before breaking below the lower end, followed by the Terra-Luna collapse, Celsius, and Three Arrows Capital, or 3AC, crises, Mignolet said. Mignolet added that whale buying has now weakened sharply while BTC has broken below the lower end of a roughly one-year trading range, warning that if whale selling continues, the market should stay alert to the possibility of unexpected negative developments.