Anthony Pompliano, co-founder and analyst with 337,000 subscribers on YouTube, said in a new Best Business Show episode that most Bitcoin whales were just watching during the most recent sharp correction that saw BTC losing more than 50 percent of its value in two months.
There is still a huge shortage of buyers. Whales on the chain, wallets with more than 1,000 Bitcoins, have not made any material purchases. So even though the price is going up and down, the whales are showing sideways movement.
The analyst added that whales need to start buying BTC for its price to start rising.
For us to see a significant upward movement in price, what you can see is usually an increase in whale activity. Whales start buying and then price follows… That means we shouldn't expect to see any positive price action until we see an increase in whale activity.
Pompliano also looked at the net realized profit/loss metric, which shows whether Bitcoin holders are selling at a loss or at a profit. According to the Morgan Creek executive, Bitcoin's decline seems to be coming to an end.
The decline seems to be slowing down, that is, there are decreasing losses… There were tons of people selling at a loss in late December and early January. But now we're back to zero, you can think of it like a breakeven point.
Pompliano also checked the percentage of supply in Bitcoin's profit metric. The leader said there are flashing signs that the cryptocurrency may bottom out.
If you look at the percentage of supply in profits, you can see that it's only around 70 percent… That's roughly the same level we saw during the summer when we really bottomed out before we had a big rebound.
At the time of writing, Bitcoin is trading at $33,233, down 6.86 percent during the day.