Bitcoin whales jumping ship as exchange inflows reach 3‑month high

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The num­ber of Bit­coin whales is rapid­ly decreas­ing to lev­els not seen since ear­li­er this year, pos­si­bly due to the three-month high of coin inflows to cen­tral­ized exchanges (CEXs).

Bit­coin (BTC) mar­ket track­er Glassnode has issued sev­er­al bear­ish indi­ca­tors for the largest cryp­tocur­ren­cy by mar­ket cap, includ­ing data sug­gest­ing a mar­ket exit for whales hold­ing at least 1,000 coins, and exchange inflows of more than 1.7 mil­lion coins, the most since February.

High CEX inflows of BTC sug­gest whales are poten­tial­ly exit­ing the mar­ket by sell­ing coins, pos­si­bly as a way to pre­pare for a longer mar­ket down­trend. Coin­tele­graph report­ed on May 7 that recent sell-offs were like­ly exe­cut­ed by short-term hold­ers who had accu­mu­lat­ed coins in late Jan­u­ary and ear­ly Feb­ru­ary when prices had reached a 6‑month low of about $34,800.

Unfa­vor­able out­looks on the mar­ket based on hard data have led the Bit­coin Fear and Greed Index to drop to 11, the “Extreme Fear” region. The index rates the gen­er­al amount of fear or greed among Bit­coin investors.

Despite the poor sen­ti­ment, BTC dai­ly trans­ac­tions do not yet appear to have been neg­a­tive­ly affect­ed. Accord­ing to on-chain data from YCharts, there were 233,892 dai­ly trans­ac­tions worth about $30 bil­lion on May 8, which has been about the aver­age since January.

Lead on-chain ana­lyst at Glassnode “Check­mate” tweet­ed on Sun­day “Many of you are wait­ing for the Bit­coin ‘capit­u­la­tion wick’,” par­tial­ly con­firm­ing the notion that investors expect BTC to con­tin­ue to fall. A capit­u­la­tion wick is usu­al­ly char­ac­ter­ized by a rel­a­tive­ly long, sud­den, and cat­a­stroph­ic drop in price, like the one wit­nessed on March 12, 2020, when BTC dropped 43% in a day to around $4,600.

Relat­ed: Bit­coin price tar­get now $29K, trad­er warns after Ter­ra weath­ers $285M ‘FUD’ attack

Mar­ket ana­lyst Caleb Franzen tweet­ed to his 11,000 fol­low­ers on Sun­day that investors should look for mar­kets to con­tin­ue trend­ing down­ward based on his analy­sis sug­gest­ing we will remain “short-term bear­ish.” He con­clud­ed by stat­ing that it “seems worth­while to expect more pain.”

BTC is cur­rent­ly down 10.39% over the past sev­en days, trad­ing at about $33,806 accord­ing to Coin­tele­graph data.



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