After a few days on the rise, Bitcoin has experienced a major drop. The market rise appears to have petered out, and bears are beginning to make their move. There was a spike in onchain whale activity as BTC got closer to the $20,000 mark, as shown by recent charts. This is a crucial measure of one’s mental fortitude.
Bitcoin (BTC) traded at a weekly high of $23.5k for the first time since June.
Recent examination of current trends on multiple CryptoQuant charts suggested $25k will likely act as short-term resistance for Bitcoin. Recently, from August 10th to the 17th, the asset traded for more than $23.5k, a result of the relief rally. Since Bitcoin’s collapse from $30k on June 10, this was the longest period of time it had remained above the threshold.
However, the asset became overpriced after reaching this point, and it faced widespread resistance while attempting to collect $25,000. Amidst this upheaval, on-chain whale transactions began to emerge. Bitcoin’s attempt to reclaim $25,000 awoke the sleeping whale wallets and long-term holders.
The Bitcoin Spent Output Value Bands show that whale activity skyrocketed from 1k to 10k BTC. Furthermore, a recent increase in BTC whale inflow has been revealed by the BTC Exchange Inflow chart. This indicates that majority of these BTCs were sent to trading platforms.
The Netflow of Bitcoin Exchanges demonstrates a continuous rise in the volume of coins entering trading platforms.
Many of the whale tokens correspond to assets that are less than 24 hours old. Nevertheless, as the charts show, whales transferred almost 8,000 BTCs that had been dormant for three to five years. Large-scale transfers of tokens to trading platforms, especially during rallies, may signal impending sales.
More importantly, the BTC Exchange Netflow is growing, which indicates that new funds are being brought into the exchange at a faster rate than they are being sent out. Bearish indicators predominate here. In contrast, when the Binary CDD metric has a value of 0, it indicates less volatility among long-term holders.
BTC has lost 6% of its value in the last 48 hours as of this writing. The price of the asset as of right now is $19,262. There appears to have been significant pushback against the recent rally. Despite this evidence, proponents persist in their belief that the worst of the market is already priced in.