Miners have been dumping their BTC but whales are still buying the dip as Bitcoin price below $30,000
Although Bitcoin price has dropped below $30,000 for the first time in a month, charts from CryptoQuant and Glassnode show that Bitcoin whales are accumulating Bitcoin from miners who have been selling their flagship cryptocurrency stashes.
Bitcoin price crashes below $30,00, whales still may be steadily accumulating BTC
According to the Chinese crypto-journalist Colin Wu, the average number of BTC transferred to the exchange by miners in the last month has seen multiple small peaks, more than 60 BTC occurring 6 times, July 17 was 98.6171, and this is the maximum since November 3, 2020.
After that, Wu has shared that, according to the data shared by the Bybt analytics service, $135 million worth of Bitcoin has been liquidated in just one hour. The biggest part took place on the Bybit exchange, where a $4.51 million worth of Bitcoin longs was liquidated.
Recently, CryptoQuant CEO Ki Young Ju highlights a possible catalyst driving Bitcoin’s selling pressure as the leading cryptocurrency now trades below $30,000. He points to the exchange whale ratio, an on-chain indicator that tracks the activity of deep-pocketed investors by dividing the top 10 BTC transactions by the total amount of BTC sent to crypto exchanges. The ratio is hovering at a level indicating bearish price action.
“BTC selling pressure seems to be high. Whales are depositing BTC to exchanges. When this indicator consistently keeps above 85%, the market has usually been bearish”, he said.
Glassnode also reports that the Bitcoin reserves of centralized exchanges have continued to evaporate despite the recently sustained bearish momentum, with an average of 36,000 Bitcoin (worth roughly $1 billion) being withdrawn from exchanges monthly. The reason may be that large investors are moving BTC into safe storage rather than leaving their funds on exchanges to prepare for selling.
Bitcoin net position change on exchanges | Source: Glassnode
While emphasizing signs of consolidation, Glassnode noted heavily divided market sentiment, anticipating possible extreme volatility for the market:
“We have an extremely divided market, and one with a likely expansion of volatility just around the corner.”
The CIO of asset manager Moskovski Capital also shared a Glassnode chart of crypto whales accumulating BTC.
The chart shows that the BTC supply stored on 1,000 – 10,000 BTC wallets has risen to hold 57,000 Bitcoins recently – that’s an equivalent of a whopping $1,698,126,900.
As a result of a major correction, the leading cryptocurrency could not hold above the $30,000 support level. At the time of writing, Bitcoin price is trading at $29,676, down 6% in the last 24 hours, according to CoinMarketCap.
The Crypto Fear & Greed Index raced to catch up, dropping to 19/100 — also denoted as “extreme fear.”
Crypto Fear & Greed Index as of July 20 | Source: Alternative.me
Currently, support remains between $27,000 and $29,000 despite the price drop. Altcoins have added to the current weakness as Bitcoin falls, with many of the top 50 cryptocurrencies by market capitalization posting 20% weekly losses.
Ether price lost its longer-term uptrend in 2021 on Monday, continuing to trade below $1,800. The crypto market cap currently stands at $1.190 trillion. At the same time, Bitcoin Dominance accounted for 46.7%.
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