Bitcoin analysts are looking at Coinbase outflows and premiums as their immediate signals to predict the short term BTC price movements. Bitcoin price seems to be stuck between $35k-$40k having spent the past couple of weeks sitting between the same range after a massive correction of 10%.
Whales Are Depositing Bitcoin on Exchanges
The current bitcoin bull rally has been carried by various market players throughout the past three months, where institutional FOMO post block reward halving helped bitcoin break past its 2017 ATH, and later retail and whales also joined the party.
Bitcoin whale’s trade patterns are seen as a key indicator of market sentiment where if whales are moving their BTC stash out of exchanges, it is seen as a bullish move as they anticipate a big price move and thus want to sell at a higher price and vice verse.
Currently, whales are moving their bitcoin onto exchanges leading to selling pressure in the market driving the bearish sentiment in the short term. Ki-Young Ju, a crypto analyst believes an outflow of nearly 10k BTC from Coinbase the leading US crypto exchange can tilt the market sentiment in bull’s favor.
Whales are depositing $BTC to exchanges.
Should keep eyes on Coinbase outflow and Coinbase Premium(will launch by tmr) pic.twitter.com/kotHydfxfM
— Ki Young Ju 주기영 (@ki_young_ju) January 20, 2021
Yesterday one whale moved 6500 BTC from their Coinbase wallet to an unknown exchange, which even though a significant move could not help bitcoin to move past $37,0000. It suggests that a higher outflow of BTC would be required to come over the selling pressure.