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After a phenomenal week, Bitcoin failed to hold its fort above $60K and took a plunge below $55K on the 15th of March. While the flagship cryptocurrency did manage a minor recovery, volatility in the coin market intensified as a result of the fall.
At the time of writing, Bitcoin was exchanging hands at $56,007. However, the RSI has held on to the buying territory for two straight weeks, as depicted by the above daily BTC chart.
On-chain Data Signals Exchange Deposits
Spike in Bitcoin inflows to crypto exchanges preceded the recent price movement. This happens to be one of the biggest pullbacks over the last few weeks.
The CEO of the blockchain analytics company CryptoQuant, Ki Young Ju, revealed an instance of a huge deposit to Gemini’s hot wallet of 18,000 Bitcoins (worth over $1 billion at the time), following which the crypto-asset slumped.
“THIS 18K $BTC DEPOSIT IS LEGIT AS IT WAS A TRANSACTION BETWEEN USER DEPOSIT WALLETS AND GEMINI HOT WALLET. ALL EXCHANGES INFLOW MEAN IS SKYROCKETED DUE TO THIS DEPOSIT. DON’T OVERLEVERAGE IF YOU’RE IN A LONG POSITION.”
Glassnode, on the other hand, had a contradictory argument. According to the platform, the transactions in question were in fact internal. The funds were reportedly already on the exchange’s wallets and were simply transferred internally.
However, stablecoin inflows into exchanges have been a contributing factor for the recent price rally, which, if continued, could trigger significant damage to the ongoing bull run.
Bitcoin Over-leveraged Positions Of Over $2 billion Liquidated
As Bitcoin took a breather from the weekend highs, derivative traders had a bad day. This is because positions worth more than $2 billion, highest since 21of Feb, as cryptocurrency exchanges liquidated overleveraged positions of several traders.
According to Bybt’s latest stats, around $2.23 billion positions and, over 180K traders were liquidated in the past 24-hours.
In fact, $1.12 billion of longs were liquidated in a matter of just 5 minutes, alone.
The largest single liquidation order took place on Binance with over $800 million, followed by Bybit and Huobi with $32 million and $30 million respectively.
Bitcoin & CME Gap Intertwined?
The latest downturn could also signal a potential filling of the CME gap. Most often than not the price of the crypto-asset is heavily related to the CME gap. While this does not hold true, Bitcoin testing support at $55K before bouncing back up after filling the gap around $57K, brings a bullish indicator at play.