Bitcoin Pump Indicator for Noobs
When Bitcoin pump? This is the age-old question asked by many newbie traders, but there is a simple solution to get some insights into when this might happen.
Thanks to a good friend of mine @cryptoiskey, I learnt about Whale Alert! The @whale_alert Twitter account posts tweets about significant BTC and altcoin wallet movements, to and from exchanges and wallet to wallet.
It also notifies of new USDC and Tether minting, but why is that relevant? Well when new stable coins are minted it means money is flowing into the crypto space and the stable coin is a digital representation of that, it is very likely that most of this new money will be used to purchase new bitcoin as bitcoin is the main asset being speculated on at present.
In this screenshot we see ~9 Million USDT being sent to the Poloniex exchange which means that it will likely be used to purchase BTC. My premise would have been right because when I saw this earlier BTC was around 11500 USD on Coinmarketcap and now it is 11830 USD when I got around to writing this post I planned, so the pump indicator seems to be spot on!
Here is another for 10 Mil and the were quite a few of these over the last 6 hours so BTC might be in for quite a nice upward ride.
Now, conversely if large quantities of BTC were being sent to an exchange, that means that BTC is likely going to be sold for a stable coin or cashed out if that exchange has fiat offramps.
Here is a good example, we see here that 3.4 Million USD worth of XRP was sent to Bitstamp, so likely it will be sold, we also know that Bitstamp.net has several fiat offramps to EUR or USD via bank wire or SEPA transfer, so it is likely that the XRP will land up being sold for fiat, it could however, land up being sold for BTC which will further pump the BTC price, but it doesn't bode well for XRP either way.
So all you have to do to keep on top of BTC price movements or get some juicy info to post on Steem about is just follow the @whale_alert Twitter account, they also have a website https://whale-alert.io/ where you can subscribe for api's to use with your apps or to integrate with your trading signals software, there is also a cheap personal notifications service for about $9.95 that sends you up to 100 email notifications and unlimited Slack notifications which can be set to be more granular than what you see on their Twitter account.
Disclaimer: This is not constituted as financial advice and the author of this content shall not be liable for any repercussions arising from the use or misuse of this information. When in doubt, seek professional financial advice.
Or use the quick SteemConnect link: https://app.steemconnect.com/sign/account-witness-vote?witness=thecryptodrive&approve=1