Bitcoin is sending mixed signals: should you buy, sell or hold?

The Bitcoin market is sending mixed signals, leaving investors wondering whether to expect a recovery or continue to fall. In the podcast Thinking Crypto, Tony Edward and Brian Quinlivan from Santiment recently discussed the current complex landscape. Bullish signs: The accumulation of whales and the steady flow of money inflowing in While Quinlivan acknowledged that the past few months have been challenging times for Bitcoin and alternative cryptocurrencies, he noted that the last few days have shown signs of optimism. However, when sentiment shifts back towards the upside, there is a risk of a bullish trap, when prices may stagnate or even fall before finding more stability. Quinlivan advises market participants to exercise caution to avoid misinterpretations while whales and sharks are driving the true direction of the market. Notably, between February 20 and March 3, wallets containing more than 10 BTC sold more than 11,000 BTC, causing the price to plummet Since then, however, those wallets have acquired a significant portion of that coin. This suggests that whales may be accumulating, which usually indicates positive market conditions. This suggests whales may be accumulating again – a historically positive sign for the market. Quinlivan also provides data on whales' holdings of stablecoins. Specifically, he tracked wallets worth between $100,000 and $10 million in USDT stablecoins, often referred to as "smart money." He noted that their Tether holdings have increased from 21% to 21.6% since mid-February. This shows that new capital is pouring into the market. USDC holdings also increased slightly. These moves show that despite concerns about the bearish prospects, there is still an influx of new capital into the crypto ecosystem. Bearish Signal: Bitcoin Supply Increases on Exchanges But there is a counterargument. While whale activity and stablecoin trends show positive market behavior, the supply of Bitcoin on exchanges shows a more cautious story. Since the beginning of February, more than 35,000 BTC have been transferred to exchanges, a trend that may indicate that traders are preparing to sell. If this increase in the trading balance continues, it may create selling pressure that slows or reverses the upward momentum. Quinlivan points out that while the situation is not yet alarming, this trend is still worth watching closely, especially as we move closer to potential macroeconomic changes in the coming months.