PRViously on Crypto: Bitcoin whales transaction peaks; hodl, don’t trade, says the AI bot

4 min readMar 5, 2022


‘Buying The Dip’ — Bitcoin Whales Transactions Peak At Highest Level In A Month

Bitcoin whales are still relying on the “buy the dip” method to expand their long-term positions. Whales made large purchases after the price of Bitcoin fell to $34,700 following Russia’s invasion of Ukraine.

According to Santiment, a blockchain analytics business, the number of transactions over $100,000 and $1 million has hit its highest level since January 24th. demonstrating the high probability of an accumulation surge

Historically, whale purchases have significantly impacted the crypto market’s values and capitalization. For example, massive purchases towards the end of January resulted in a 15% increase in the BTC price. Analysts at Santiment anticipate a similar pattern in this case as well.
On the other hand, large purchases have a direct impact on prices and alter the implications of technical analysis. On the other hand, market participants and traders keep a close eye on whales’ conduct because they have significant access to larger marketplaces and financial resources. As a result, most traders tend to follow the whales’ approach since they feel the technique suggested by them will prove to be valid.
According to the rationale outlined above, the price dynamics of the quarter will be the result of the “buy the dip” strategy. Bitcoin bulls may be able to keep the price around $40,000 if the same factors that prevailed at the end of January continue.

The significant impact of key elements will determine long-term price changes. If such underlying facts regarding Bitcoin’s supremacy and the overall crypto industry are positive, the appreciation may continue. Otherwise, a new wave of price decreases, and fewer purchasing volumes may occur later.
The situation in Ukraine, exacerbated by Russia’s military aggressiveness, will be a crucial factor influencing the implementation of one of these policies. If the situation is ended by restoring Ukraine’s control over its land, Bitcoin may fly even higher as a new bullish waveform. Otherwise, pessimistic concerns may reignite, with severe ramifications for all major cryptocurrencies.

Currently, the price channel of $35,000-$45,000 remains solid, determining Bitcoin’s horizontal decline. Further price movements can be predicted if this channel is broken in either direction. In any case, whale behavior and purchasing decisions are good indications of short-term price fluctuations.

Also Read: Bitcoin technical analysis for beginners

Hodl, don’t trade, says the AI Bitcoin trading bot

An artificial intelligence trading bot that learns how to time the market and amass Bitcoin quickly discovered that the best strategy is to just “hodl.”

When it comes to acquiring Bitcoin, “Hodling” is the way to go (BTC). At least, that’s the conclusion of a Portuguese software developer’s artificial intelligence (AI) trading bot.
Tiago Vasconcelos, a Bitcoiner, is the man behind the trading experiment. Vasconcelos created an AI trading bot to help him amass more Bitcoin and put his coding talents to the test. Surprisingly, the bot rapidly concluded that the best method to trade Bitcoin is to buy and hold it instead of trading.
Vasconcelos is the co-founder of Aceita Bitcoin, a Portuguese group that promotes Bitcoin adoption, education, and information sharing. He is a Bitcoin enthusiast who also dabbles in Bitcoin-related side projects.
“It was a reinforcement learning AI project,” he told Cointelegraph, “where I went and gathered a truckload of historical data from BTC/USDT.” The code sourced and scraped everyday price movement from 2014 to 2021.
Then Vasconcelos “taught it, or told him [the bot] the rules, here are the candles, you may either purchase, sell, or do nothing.”

The bot would be given one point for each profitable trade. The bot loses one point as a “penalty” for lost trades. Finally, the bot gets rewarded for the total amount of Bitcoin it has collected:

“The goal is for the bot to get the highest score possible, and the exercise is that he makes thousands/millions of tries on that set of data, making a ‘mental’ path of when is best to buy, best to sell, etc.”

The beauty of AI is that the bot starts to notice “patterns” and what Vasconcelos refers to as “moves” that the bot takes in order to maximize its trading score.

“Eventually, the bot concludes the best move is to buy as soon as possible and never sell!”

Also Read: How to: Calculate your crypto taxes

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