Bitcoin Whales Bought The Recent Dip While Market Panicked
28 Dezember 2023 - 9:00PM
NEWSBTC
On-chain data suggests the Bitcoin whales may have participated in
a significant amount of buying while the market was panicking about
the recent lows. Bitcoin Exchange Netflow Has Been Quite Negative
Recently An analyst in a CryptoQuant Quicktake post pointed out
that the exchanges have recently seen outflows. The indicator of
interest here is the “exchange netflow,” which keeps track of the
net amount of Bitcoin entering or exiting out of the wallets of all
centralized exchanges. The metric’s value is calculated by
subtracting the outflows from the inflows. When the indicator has a
positive value, the inflows overwhelm the outflows, and a net
number of coins moves into these platforms. Related Reading: When
Will Bitcoin Bull Run Begin? This Could Be The Metric To Watch As
one of the main reasons investors may want to deposit their BTC to
the exchanges is for selling purposes, this trend can have bearish
implications for the cryptocurrency. On the other hand, the
negative metric implies withdrawals are taking place, which can be
a sign that the holders are accumulating right now. Such a trend
could naturally turn out to be bullish for the asset’s price. Now,
here is a chart that shows the trend in the Bitcoin exchange
netflow over the past year: The value of the metric has been quite
negative in recent days | Source: CryptoQuant The above graph shows
that the Bitcoin exchange netflow has observed some deep negative
spikes recently. This suggests that some large outflows have been
occurring from these platforms. Interestingly, these withdrawals
came as BTC slipped towards the $41,600 level, implying that some
investors were potentially buying while the rest of the market was
panicking about the drawdown. Given the large scale of the
deposits, it’s likely that whale entities were behind them. The
fact that these humongous holders were willing to risk accumulating
at these recent prices could be a positive sign for the
continuation of the rally. Microstrategy has also just announced
its massive $615 million BTC acquisition, which can naturally be
another optimistic sign for the coin. The exchange netflows
occurring ahead of the announcement are interesting, though. It’s
hard to be sure if there is any connection between the two, but one
possibility is that the whales who bought at these recent lows knew
about the acquisitions ahead of time. Related Reading: Polygon
Breaks Out Of Symmetrical Triangle, Analyst Puts This Target
Another, and perhaps the more likely explanation, is that these
large investors were looking for an entry point into the asset
ahead of the potential ETF approvals, and the dip presented as good
an opportunity as any to achieve so. Whatever the case, it would
seem like the moves made by the whales might have paid off so far,
as the Bitcoin price has rebounded since its lows (although its
recovery hasn’t been too strong yet). BTC Price Bitcoin had
recovered to as high as $43,800 during the past day, but the asset
has since slumped back down as it’s now floating around the $42,800
mark. BTC has overall moved sideways during the last few days |
Source: BTCUSD on TradingView Featured image from Todd Cravens on
Unsplash.com, charts from TradingView.com, CryptoQuant.com
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