Bitcoin Below $64k - Keep an Eye on These Whales for Reversal Signs
Hey folks.
Once again, the price of Bitcoin falls below $64k sparking fear of further decline on the charts. Now though, there are several factors that could be the reason behind the fall but a possible reason behind the aforementioned price correction could be the latest actions by the whales.
As the price of Bitcoin fell on the charts, in the last 24 hours market bears stepped up their game. The price of Bitcoin was down over 2% at one point today on coinmarketcap and Bitcoin now is pricing at just over $63k on coinmarketcap.
This price decline also had an impact on the social metrics of cryptocurrency. In fact, BTC's weighted sentiment entered the negative zone, according to AMBCrypto's analysis of Santiment's data, indicating that bearish emotion remained dominant in the market.
Source: Santiment
Furthermore, Phi Deltalytics, a writer and analyst at CryptoQuant, recently published an analysis noting a noteworthy trend that might have contributed to the most recent decline in the price of bitcoin.
A notable surge was recorded in whale Bitcoin exchange inflows, according to the analysis.
A large amount of exchange inflows were accounted for by the hike, suggesting that whales took large profits during the 2024 Bitcoin bull run. If historical data is taken into account, price corrections have frequently occurred after this indicator has increased in the past.
Source: CryptoQuant
As per data by CryptoQuant, the purchasing sentiment has been weak among the United States and Korean investors. However, the good news is that after a spike on April 24, exchange reserves of Bitcoin started to decline - a sign that selling pressure on Bitcoin was declining.
Source: CryptoQuant
Yet another bullish signal is pointed out by AMBCrypto's observation of Glassnode data.
However, cryptocurrencies subject to its volatility, anything could be expected. So stay cautious.
Not a financial advice.
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Posted Using InLeo Alpha